Tag Archives for " brand personality "

Absolutely better branding – What you can learn from a strong shot of vodka.

Chocolate vodka? Dill pickle vodka? Bacon flavored vodka? Cinnamon Roll Vodka? Smoked Salmon Vodka. I kid you not.

Seems like there’s a new flavor-of-the-day every time I visit a liquor store. Ten years ago there were basically only four or five choices of vodka. Now every brand has a dozen different whacky flavors.

Where’d the vodka flavored vodka go?

marketing strategies for alcoholic beveragesIt’s great news for mixologists, but a bit overwhelming for the average consumer.  And it poses huge challenges to marketers who are trying to succeed in this newly crowded space.

Doesn’t matter if it’s vodka, gin, whiskey or rum, the marketing strategies for alcoholic beverages are getting more and more involved.

So here’s some advice, based on one of the classic marketing case studies from this category: Absolut Vodka.

The first rule of advertising is this: Never take the same approach as your closest competitors.

If you want to differentiate your brand, you have to think “different.” Contrarian even. Everything that you say, everything that you show, and everything that you do should be different, to some extent than what everyone else in the industry is doing.

”Here’s how:

• Even if you’re selling the same thing, don’t make the same claim. There are hundreds of different ways to sell the benefits of your product or service, so find one that’s different than your competitors. That often comes down to one thing: Listening. The better you are at listening to consumers, the easier it’ll be to differentiate your brand.

• Don’t let your ads or your website look or sound anything like competing ads. Use a different layout, different type style, different size and different idea. The last thing you want to do is run an ad that can be mistaken, at a glance, for a competitor’s ad. If all the companies in your category take a humorous approach to advertising, do something more serious. Find a hook that’s based on a real need of your target audience, and speak to that. Zig when the competition is zagging.

• If you’re on the radio, don’t use the same voice talent or similar sounding music. Find someone different to do the voice work, rather than a DJ who does a dozen new spots a week for other companies in your market. Same thing for tv spots. (This is an easy trap to fall into if you live and work in a small market… there’s not enough “talent” to go around.)

Unfortunately, every industry seems to have its own unwritten rules that contradict the rules of advertising.

These industry conventions aren’t based on any sort of market research or strategic insight. They’re not even common sense. Everyone just goes along because “that’s how it’s always been done.”

The problem is, if that’s how it has always been done, that’s also how everyone else is doing it. In fact, some of these industry conventions are so overused they’ve become cultural cliches.

• Don’t use the same images or advertising concepts that your competitors are using.

The rule in the pizza business says you have to use the “pull shot:” A slow-motion close-up of a slice of pizza being pulled off the pie, with cheese oozing off it.

In the automotive industry, conventional thinking says you have to show your car on a scenic, winding road. Or off the scenic winding road if it’s an SUV.

In the beer business, it’s a slow motion close up of a glass of beer being poured.

marketing strategies for alcoholic beveragesThose are the visual cliches… the images that everyone expects. They are the path of least resistance for marketing managers.

But if you go down that road, and follow your industry conventions, your advertising will never perform as well as you’d like. In fact, history has proven you have to break the rules in order to succeed.

Absolut Vodka won the market by winning the imagination of the consumer through brilliant print advertising.

In 1980 Absolut  was a brand without a future. All the market research pointed to a complete failure. The bottle was weird looking. It was hard to pour. It was Scandinavian, not Russian. It was way too expensive. It was a me-too product in the premium vodka category.

But the owner of Carillon Imports didn’t care. He believed his product was just different enough… That all he needed was the right ad campaign.

So he threw out all the old conventions of his business and committed to a campaign that was completely different than anything else in his industry. And he didn’t just test the water, he came out with all his guns blazing.

TBWA launched a print campaign that called attention to the unique bottle design of Absolut. It was brilliantly simple, and unique among marketing strategies for alcoholic beverages of any kind.

Needless to say, it worked.

The “Absolut Perfection” campaign gave a tasteless, odorless drink a distinctively hip personality and transformed a commodity product into a cultural icon. In an era where alcohol consumption dropped, Absolut sales went from 10,000 cases a year to 4.5 million cases in 2000. And it’s still the leading brand of Vodka in the country.

The moral of the story is this: When you choose to follow convention, you choose invisibility.

“To gain attention, disrupt convention.”

marketing strategy for alcoholic beverages That’s my own quote.

Instead of worrying about what everyone else has done, focus on what you could be doing. Take the self-imposed rule book and throw it away. Do something different. Anything!

But long before the days of dill pickle vodka, Absolute added a nice local touch to its ads in major markets such as LA, New York and Chicago. (ads at left)

 

 

 

They made the campaign timely and locally relevant by hitching onto well-known events, famous people and iconic places. It was a brilliant example of wise brand affiliations.

marketing strategies for alcoholic beverages

 

This disruption mindset doesn’t apply just to the marketing strategies of alcoholic beverages. It’s important for professional service companies or any other category where it’s tough to differentiate one company from the others.

Take real estate agents for example. Realtors are, in essence, me-too products. Flavorless vodka. In Bend, Oregon they’re a commodity. Even if a realtor has a specialty there are at least 500 other people who could do the same thing. For the same fee. That’s the bad news.

The good news is, even though there’s no difference in price and no discernable difference in service, you could still create a major difference in perception. If you’re willing to think different.

Like Absolut Vodka, a unique approach to your advertising is the one thing that can set you apart from every other competitor. Advertising is the most powerful weapon you have, simply because no one else is doing it. At least not very well.

But putting your picture in an ad won’t do it. That’s the conventional approach. Remember rule number one and run advertising that says something.

Find a message that demonstrates how well you understand your customers or the market. Run a campaign that conveys your individual identity without showing the clichéd, 20 year old head shot.

Do what the owner of Absolute did. Find an approach that is uniquely yours, and stick with it no matter what everyone in your industry says. Over the long haul, the awareness you’ve generated will translate into sales. Next thing you know everyone else will be scrambling to copy what you’re doing.

Eventually your campaign just might become a new industry convention. Maybe not on par with bacon vodka, but iconic, nonetheless.

For more on marketing strategies for alcoholic beverages, try THIS post. 

small business branding from BNBranding

Four Ingredients of Great Brands – Learning from breakfast cereal and a four-buck burrito

Branding is a popular topic in the business press these days. Unfortunately, coverage of companies like Tesla, Nike and Virgin, make it sound as if Branding is a discipline reserved only for Fortune 500 companies and globe-trotting billionaires. Small-business branding is often overlooked.

small business branding from BNBranding

Let me set the record straight on that: It’s entirely possible to build a successful brand without a million-dollar marketing budget or a cadre of high-paid consultants.

Many small-business owners do it intuitively. They build a successful business, step by step, year after year, and eventually a great brand develops.

It does not happen the other way around.

You can’t just come up with a nice name a great logo and expect the business to become a successful brand overnight. Without a good, solid business operation, you can’t have a great brand.

If you look closely you can find plenty of inspiring brands in everyday places. Like the breakfast table and the local Mexican restaurant. Because the fact is, branding is not exclusive to big business. If you deconstruct it, you’ll see that all successful brands share four important things:

Relevance.

Credibility.

Differentiation.

Consistency.

Forget about Proctor & Gamble for a minute and consider the small businesses branding case studies in your town or neighborhood. Think about the little guys who have a ridiculously loyal following. What makes them successful? What have the owners done that turned their typical small business into an iconic local brand?

small business branding - big fat burrito In Bend, Oregon there’s a popular little restaurant named, simply, “Taco Stand.” It’s not the best Mexican food in town, but it’s damn good and it costs next to nothing. It’s so cheap it’s almost embarrassing.

Taco Stand’s in a terrible location next to a laundry mat. It’s not open for dinner. They have no web presence or advertising budget. And yet, it’s a successful little brand, doing much better than many high-end restaurants downtown.

Taco Stand has all four ingredients of a tasty brand, with a bit of Tabasco thrown in for good measure.

For Taco Stand, flavor and low cost are the differentiators. They consistently deliver on a very simple value proposition: You’ll get a big, great-tasting burrito for very little dinero.

Credibility stems from the genuine quality of the food, the consistency, and the loyal, locals-only reputation. If there were an insider’s guide to Bend dining, Taco Stand would be top of the list.

Small-business branding – learn from the branding mistakes of the big boys.

Most people think differentiation and credibility is easier for big corporations. They can launch a new brand with a massive tv campaign, effectively differentiating their product on nothing but advertising creativity and pretty packaging. Television presence alone can lead to some degree of credibility. But it won’t necessarily last.

brand credibility in cereal branding Take, for example, Smart Start cereal…

Great name. Great-tasting product. Launched with beautiful, minimalistic package design from Duffy & Partners and an old-school, Fortune-500 style marketing effort with lots of full page, full color ads in targeted magazines like Shape and Parenting.

My kids like Smart Start, but they’re not the target market. It’s an adult cereal, promoted on its nutritional virtues.

Too bad. As it turns out, Smart Start isn’t as nutritious as it’s cracked up to be. It’s loaded with sugar… 14 grams of high fructose corn syrup, to be exact. That’s more than Fruit Loops, Cocoa Puffs or Cap’n Crunch.

So much for brand credibility.

I’ll bet Smart Start doesn’t have the staying power of Cap’n Crunch — my childhood favorite. Because in this day and age, consumers are too smart for Smart Start. When the word gets out, the brand’s going to have a huge credibility issue on their hands.

The brand promise — that this cereal is a smart, healthy start to your day — is out the window.

Kellogg’s will probably fight back with the old line-extension trick. Rather than addressing the underlying weakness of the product, they’ll just keep launching new flavors of Smart Start and new spin-offs.

brand credibility small business branding(They already have several variations, including “Strong Heart” that has 17 grams of sugar, and Strawberry Oat Bites. )

Also notice that the packaging has devolved over the years… what started as a distinguished, minimalistic design has become less and less unique with every variation.

So Smart Start’s credibility is sorely lacking for anyone who pays attention to a label. The brand’s consistency is debatable with all the line extensions. And the brand’s relevance is dwindling as more people find out about its nutritional shortcomings and turn to truly healthy alternatives from brands like Kashi.

For a big company like Kellogg’s, it may not matter. Maybe Smart Start is doing well enough. Maybe Kellogg’s can chalk up a good profit despite the questionable product claims.  It’s a big company, with big resources. They can just move on and do it all again.

Smaller companies don’t have that luxury. You can’t afford to launch a new brand under false pretenses of any kind. Credibility too hard to come by, under the best of circumstances.

What do you suppose would happen to Taco Stand if they suddenly started marketing “healthy” burritos?

It’d be a recipe for a small-business branding disaster…

Relevance would be the first to go, since people who want a big, cheap burrito don’t really care about healthfulness. (Just because you can make a claim, doesn’t mean it’s going to be relevant to your core audience.) “Healthy” is not part of the Taco Stand value proposition.

Credibility would lost, because no one would believe that a Taco Stand burrito is really healthy.

And, of course consistency would be sacrificed. Consistency of flavor and consistency of their messaging.

After that, no amount of differentiation would help. It would end up like so many other restaurants that just come and go, leaving a bad taste in everyone’s mouth.

So what’s the lesson here for small-business branding?

  1. Make sure your product claims are relevant, and not just good-for-nothing add-ons.
  2. Don’t choose a name, like “Smart Start” that cannot be substantiated by the facts.
  3. Be consistently authentic. If you serve a great, cheap lunch, don’t try to do dinners.

For more on what all great brands have in common, try THIS post.

For help with your small-business branding and marketing management, schedule a free consult with BNBranding. 

 

1 what great brands have in common Patagonia

What do great brands have in common?

What are the common attributes of the world’s greatest brands? And more importantly, what can the average business owner, entrepreneur or marketing director learn from the greats?

I could have done a listicle on the subject: “5 things that great brands have in common.” But that would have been lame… the form of the content would have been contrary to the first, most common attribute that great brands share: Differentiation.

Great brands are highly differentiated from the competition. 

Brands like Ikea, Whole Foods and Nike play by their own rules. They break the preconceived notion of function, service, style or culture and catch the competition off guard. That’s how they establish leadership positions.

Under Armour has risen past Adidas and grabbed second place behind Nike, and it wasn’t by making me-too products. They broke the preconceived notion of function in a t-shirt and have parlayed that into a sporting goods powerhouse.

common attributes of great brandsZappos differentiated itself in the E-commerce arena by focusing on service.

Tony Hsieh knew, from the very beginning, that it wasn’t just a matter of moving a lot of shoes. He wanted to be the Nordstrom of Ecommerce, and Hsieh built the entire operation around that one, core brand value.

Now it’s actually integrated into the Zappos brand identity. “Powered by Service.”

These days, start-ups commonly pitch themselves as the Zappos of of this, and the Zappos of that… “The Zappos of office supplies.”  “The Zappos of skateboarding.”  “The Zappos of specialty foods.”

They all want to differentiate themselves by emulating Zappos, and then get bought by Amazon for $928 million. Like Zappos did.

Apple has always played by its own rules. It’s not just differentiated, it’s purposely contrarian.

It was born that way, as the counter-culture antithesis to Windows and IBM.

According to a 2002 Wired Magazine article, “they did it by building a sense of belonging to an elite club by portraying the Mac as embodying the values of righteous outsiderism and rebellion against injustice.”

common attributes of great brands

So as I write this article on a MacBook Pro what does that say about me?

It says that I’m consciously creative. That I value design. That I like simplicity. That I’m not a corporate lemming. That I “think different.”

Those feelings were imprinted in me the first time I sat down at at a little Mac. And now those feelings keep replaying every time I pick up my iPhone 7. (Not so much when I have to deal with iTunes.)

Great brands connect on an emotional, gut level.

A hot bowl of tomato soup on a cold winter day triggers feelings of comfort, love and security for millions of Americans. It’s M’m M’m Good! (That slogan is ranked as one of the 10 best of the 20th century, and it was successfully resurrected in 2002.)

The ingrained goodwill that we have for Campbell’s Soup is the only thing that’s sustaining the company amid MSG scares, shrinking category sales, and stiff competition from Progresso and other, healthier choices such as Amy’s and Pacific Foods.

what great brands have in commonSpeaking of emotional attachment, let’s talk Target, the country’s second-largest retailer.

My daughter is an absolute brand fanatic. She lives for those Target shopping trips. The ads speak to her. The experience is superior to any other store. And she loves the products they carry. She jokingly admits to “having a problem.”

According to Harvard Business Review, Target’s business objective was to create an alternative to Wal-Mart’s price leadership. It’s done that through upscale discounting — a concept associating style, quality, and price competitiveness.

This “cheap-chic” strategy enabled Target to become a major brand and consumer-shopping destination, and was built around two interrelated branding activities:

what great brands have in common... Target, Zappos, Apple, Harley DavidsonDesigner partnerships and clever, creative advertising.

Target spends 2.3 percent of its revenues on advertising. Target’s agencies regularly come up with fun, memorable ad campaigns that maintain the brand’s hip design aesthetic that has helped transformed its signature bull’s-eye logo into a lifestyle symbol. As my daughter put it, “Yeah, I follow them on Instagram because it’s aesthetically pleasing.”

Target’s brand promise is summed up very nicely in its tagline, “Expect More. Pay Less.”  In other words, the value is a given, but there’s style too. Otherwise, millennials would dessert it faster than you can say “Where’d Sears go?”

what great brands have in commonTarget has successfully associated its name with a younger, hipper, edgier image than its competitors. It’s not just Target, it’s “Tar-zhay.” And for my daughter, who grew up shopping there, it will always will have a special place in her heart.

If you’re a skier, you might be interested in the emotional attachment I have to my Head skis.

If you’re a motorcycle enthusiast, you’ll be familiar with the cult-like culture of Harley Davidson.

If you’re a driving enthusiast, you’ll relate to BMW’s brand messaging…  “The Ultimate Driving Machine.” And you’ll understand that no one bought a Dodge Viper because of its product features.

Emotion is everything when it comes to building an iconic brand.

Great brands deliver on their promise year after year.

Target stays relevant by keeping up with the latest fashion trends and aligning itself with the right designers. The right stars. The right brand affiliations. It’s a constant effort to always keep things fresh.

Many business owners seem to think of branding as a one-time event — do it and it’s done. But that’s not it at all. Branding requires constant diligence.

You won’t stay competitive long enough to become iconic if you’re not delivering on your brand promise. To remain emotionally connected to your tribe, you have work at it on a day-to-day basis. Because an iconic brand does not guarantee business success.

Was Saturn iconic? Certainly for a few years in  automotive circles. What about Oldsmobile and Plymouth? Many icons of the auto industry have stalled, and ended up in the perverbial junkyard.

VW lost millions of fans when they duped the public on Diesel admissions. But the strength of the brand will carry it through. Eventually.

what all great brands have in common Audi

For about 10 years I was a loyal Audi owner. One holiday weekend I had to drive my Q7 two and half hours on a narrow, icy, highway that’s sketchy even on a clear, summer night.  I felt security, safety, familiarity, excitement, satisfaction, indulgence.

The trip wasn’t exactly fun, but it reinforced all my beliefs about the brand: Best damn cars for snowy roads. Period.

Ultimately, however, the brand lost me. I gave up that extra sense of security on snowy roads in favor of financial security. I just couldn’t justify the expense of long-term Audi ownership. I literally felt sick every time I had to check into the service department at the dealership.

The Audi brand couldn’t deliver on its promise when my car was in shop.

Great brands have a clear sense of purpose.  

Your brand’s purpose isn’t to make money. That’s the purpose of the business. The brand needs to stand for something deeper and more meaningful than that.

Nike sells shoes and apparel. But it’s purpose is to inspire action, performance and personal achievement. “Just Do It.”

Starbucks sells coffee and fast food. But it’s purpose is to fill a void in our busy lives. As Howard Shultz once said, “A burger joint fills the belly, but a good coffeehouse fills the soul.”

Coke-a-Cola sells sugar water, but the brand’s purpose is to spread American values around the world. It’s a little taste of freedom in a bottle.

Ikea sells cheap furniture that you have to painstakingly assemble. But it’s purpose is to bring affordable, modern design to the masses.

What is the purpose of your business, beyond making a profit?

Figure it out, write it down, and then start communicating that purpose. Relentlessly.  If you need help with that, call me.

Great brands are great communicators.

A strong, purpose-driven culture won’t help if you don’t communicate clearly.  So sharp storytelling skill is another thing that great brands have in common.

It’s a challenge, staying “on message.” That’s where many companies go wrong… their advertising says one thing, their social media campaigns say another thing, and their website communicates something else entirely.

Consistency and alignment is something all great brands have in common.

Patagonia is a brand with a very clear sense of purpose and a consistent, compelling story to match. They use an authentic, visual narrative. No staged shots of pretty boy models. No over-explanation.

It’s an approach that establishes that intangible, emotional connection that fuels success and inspires people… Participate in the outdoors and help save our wild, beautiful places.

For more on what great brands have in common, try this post.  For help with your own brand, make an appointment with me at BNBranding. We’ll get your messages aligned, and your advertising noticed.

1 Bend, oregon advertising agency blog post about brand credibility.

How to build brand credibility, one little leap at a time.

The brands I work with are not like WalMart.  They don’t spend a half a billion dollars a year flooding the airwaves with advertising. They don’t have enough money to sway public opinion in their favor. And all of them face stiff competition from bigger businesses. So brand credibility is essential.

Last week I had to convince a retail client that he couldn’t change people’s minds regarding his biggest competitor; the big box store.

“You can’t compete on price,” I said. “It’s just not a credible message.”

“Yes we can… They’re not really cheaper, not in this business,” he said.

“Doesn’t matter,” I replied. “Everyone believes they’re cheaper because the big box stores can buy in bulk. They have special deals with manufacturers.”

“No they don’t. No different than what we get.”

“I know they don’t and you know they don’t, but the public believes they do. And you can’t fight that perception.  It’s like City Hall. Even if we advertised lower prices week-in and week-out for years, consumers won’t believe that you can match the big chains on price. If you want a credible brand, you have to hang your hat on something else.”

In that case, it was service that became the centerpiece of their marketing. That’s a credible brand message. The little guys can always compete on service, because the public perception is that big chains suck at it. (Every trip to Home Depot confirms that for me.)

But it’s not enough to just start running digital ads or TV spots that say you have great service. First you have to prove it, demonstrate it, and actually deliver it every day. That way, all the reviews and stuff that show up on social media will substantiate the claim.

Bend, oregon advertising agency blog post about brand credibility.Here’s the challenge: Consumers begin every brand relationship in a state of total DISbelief. They don’t have enough information about your business to like or dislike it, but they are not neutral about it, due to their inherent skepticism. It’s the built-in BS meter they all have.

They don’t believe anything you say.

So if they have no experience with your brand, and no point of reference, you have to do little things that will allow prospects to suspend their DISbelief.

It’s a far cry from getting them to believe your pitch or trust your brand, but it’s a start. You have to build credibility, step by step.

The best story tellers — novelists, screenwriters, movie makers, comedians, preachers — know how to get audiences to suspend disbelief and go along with plots that are a bit far-fetched.

By using vivid, believable details and dialog they draw us into their stories and “sell” ubrand insight blog post about brand credibilitys on characters that are bigger than life and settings that are out of this world. Think The Matrix, Star Wars and The Lord of the Rings.

J.R.R. Tolkien commented on the suspension of disbelief in an essay, “On Fairy Stories.”  Tolkien says that, “in order for the narrative to work, the reader must believe that what he reads is true within the secondary reality of the fictional world.”

In marketing, there’s a secondary reality in every market segment. If you want people to suspend their disbelief long enough to “hear” your business pitch, you need to tell stories and use details that fit the context of that secondary reality.

Like the retail reality that says little guys can’t compete with the big box stores on price. You have to work within that secondary reality, not against it.

In fictional works lively, realistic details that fit within that secondary reality make the story more believable. More engagine. The same holds true for marketing communications of all sorts. Dramatic details and believable situations help you sell your story and sway skeptics. Not dry, hard-selling facts, but character details that reveal the personality of your brand and demonstrate your understanding of the consumer and his or her problem.

Instead of shoving your product features down their throats, try for a more novel approach.

Start by listening. Suspend your own disbelief and really listen to what customer, prospects, and non-customers have to say about your brand and your business category.  Every little nugget of insight can be turned into a new detail that will help you build brand credibility, if you use them right.

Here’s a simple, practical example: Choosing the right photos for your website. Every image should help tell the story and support the secondary reality you’re working within. If you load up lousy, stock images that everyone in your industry uses, no one’s going to believe the story that goes with the photos. Your brand cred will be shot.

That retail client of ours needed images that would support his story of superior customer service. So we didn’t use stock photos of smiling, happy customers. We created a whole new guarantee program that the big box store could never duplicate. Then we branded that idea with attention-getting graphics for the website, the ads, and the store. Good service wasn’t just talk. It was guaranteed.

Headlines are equally important. You should keep your headlines consistent with the images and with the secondary reality of your target audience. (You can’t show one thing, and say something else.)

brand insight blog on brand credibility by John Furgurson at BNBrandingIf you keep all those little executional details in sync with your operation, and maintain good practices over time, disbelief will turn to reluctant acceptance, acceptance to approval and approval to purchase. For a few lucky brands, it’ll even progress to a lifelong love.

As movie goers, game players and book readers, humans love to suspend disbelief. It’s an easy, welcome reprieve from the reality of everyday life. We jump on every opportunity we get… that’s why great commercials become part of the pop culture.

The Mayhem guy for AllState or the Old Spice campaign requires a bit of a leap. But we’re happy to do it, and go along with that reality, 30-seconds at a time.

We don’t want to be sold, we want to be entertained. If you do things right we’re willing to suspend our disbelief long enough for you to establish a dialog with us. And then a relationship. And that’s what brand credibility is all about.

For help with your own brand message, call me at BNBranding.

For more on building an authentic brand, check out THIS post. 

kombucha marketing kombucha wonder drink brand

How to compete in the booming Kombucha Market

Interview with Steven Lee of Kombucha Wonder Drink.

Steven Lee Kombucha wonder brand insight blogIn the tea business Stephen Lee is a household name. A pioneer. You could also say he’s the father of Oregon’s booming Kombucha market.

Lee first tried the popular elixir of fermented tea on a business trip to Russia, back when the U.S. and the USSR were coldly pitted against one another.

“When I first experienced Kombucha in Russia − I thought it was one of the most amazing things I’d ever experienced,” Lee said. “There was no question in my mind. I knew it was going to be a phenomenon.”

So Lee brought a SCOBY back with him and started brewing his own kombucha in his kitchen. But it would be many years, and several start-ups later, before he would jump into commercial kombucha production.

Over the years Lee built and sold five different tea companies. He literally wrote the book on Kombucha and today he is continuing to help lead Kombucha Wonder Drink, which he recently sold to Harris Freeman, America’s largest private label tea packer.

tips for new logo design by BNBranding

I sat down with Steve to talk brand building in the kombucha market, business creativity and his long list of successful entrepreneurial ventures.

It all started with Universal Tea Company in the early 1970s with $2500 and a basement full of herbs, spices, teas and dreams…

 

 

SL: When we started Universal Tea Company back in 1972 there was there wasn’t much competition… Lipton, Celestial, Bigelow and Twinnings. We were selling bulk to natural foods stores, but we really hit on peppermint… We were bringing peppermint in from Eastern Oregon — It’s the finest peppermint in the world — and selling it in bulk. We actually bought a wheat combine for $800, reversed the airflow, got a tractor-trailer license and began processing and hauling. We sold hundreds of tons of mint to Lipton and Celestial Seasonings.
tea and Kombucha market

JF: How did that transition into Stash Tea Company?

SL: We sold universal Tea Company to our bookkeeper for $45,000 in 1977. It had taken us five years to figure out what we wanted to do with Stash Tea, because everything we tried failed. We finally decided to sell tea bags to the food service industry and through mail order. It was a slow build over 21 years. We did everything as inexpensively as possible.

JF: From what I heard, you had some very innovative marketing programs.

SL: Yes. We had more than 100,000 people on our mailing list. We used gifts, discounts and eventually free shipping to create loyal customers. By the late 80’s mail order accounted for 10% of our revenues, but 35% of the company’s total profits. Eventually Fred Meyer (the grocery chain) called us, and asked if we’d be interested in selling our tea in their stores here in the Northwest. So they were our first retail account.

By 1990 Stash was the second largest purveyor of specialty teas, behind Bigelow. Lee and his partner, Steve Smith, sold Stash tea in 1993 to Yamamotoyama, the oldest tea company in the world.

JF: What did you do differently after that, when you were starting Tazo?

SL: Well, we started Stash tea with $2500. Tazo was capitalized with a half a million. Plus, we had 20 years of experience under our belts. We had a lot of courage and a lot of confidence. We just marched right out there with it. We knew where to go. Who to contact. How to be creative…

branding blog on tazo teaWe got a very talented team of people together. The guys at the design firm and a copywriter worked with my partner, Steve Smith, and they were just brilliant together. Such a creative force!

There are a lot of people who get involved in the brand building process early on who set precedents. The name, for instance… With Stash, from the day we came up with that name, we had to back-peddle. “No, we’re not about marijuana.”

With a name like TAZO, and the right creative team, anything could happen. The writer said, “it’s kinda like marco polo meets Merlin on the crossroads of existence.” That was the beginning of the whole storyline. They pulled that one outta their hats.

Steve Sandoz, the copywriter on the Tazo project, once told a reporter that Tazo was “the name of the whirling mating dance of the pharaohs of ancient Egypt and a cheery salutation used by Druids and 5th-century residents of Easter Island.” Proof that sheer creativity can pay tremendous dividends when it comes to building a brand.

JF: It also helped that the specialty tea category was booming by the time you started. Didn’t Republic of Tea pave the way for Tazo?

SL: They certainly did. There were no longer just five or six tea companies out there. There was some real innovation happening and consumers were aware of better teas.

JF: Tazo launched with a product that cost almost twice as much as Stash. Was premium pricing a big part of your strategy, or was it just that the ingredients were more expensive?

SL: Our strategy was to launch with a product that was made of much higher quality ingredients, and that dictated the retail price. We made no more margin. 40 to 45% gross margin.

marketing kombucha tea marketingIn 1998, Steve Smith and Steve Lee noticed that Starbucks was piloting a brand of tea called Tiazzi, which they perceived as an infringement on the Tazo brand. A polite “cease and desist” letter led to a meeting in which Starbucks offered to buy the Portland company. The sale closed for a reported $9.1 million. Only five years from founding to acquisition. Tazo grew to be a billion dollar brand before being replaced by another Starbuck’s brand, Teavana.

JF: So at that point you had the exit that every entrepreneur dreams of. You could have done anything… What drove you to start all over again?

SL: That’s what I do. My forte is getting things started that inspire and motivate me, then surviving through tough times.

JF: (laughing…) That’s your entrepreneurial strategy??? Get it started and then hang on?

SL: Yeah. I’m attracted to esoteric, romantic categories that inspire me. Tea is very romantic. I was very inspired by that first taste of kombucha that I had in Russia.

SL: The first domestic commercial kombucha that I knew of was a brand called Oocha Brew, here in Portland, that started in 94. That was before GT Dave. I was ready to invest in their company. Unfortunately for Oocha Brew, they learned very fast that when you create a raw kombucha you have to be very careful… If it’s not handled properly all the way through the distribution channels to the store and all the way home into the fridge there’s a high risk of being too high in alcohol. In 1998 they sold a large quantity to QFC stores and the bottles all started exploding. The caps were coming off. That was enough to bankrupt them.

SL: GT Dave began in ’95, grew very slowly until he got some funding in 2003. At that point, Synergy quickly became #1 in the kombucha world with a raw product, and he never looked back.

We started developing Kombucha Wonder Drink in 1999 and launched in 2001. We had a lot of confidence then too, because all the retailers that I talked with said, “oh yeah, if you do kombucha we’re all over it.” So getting it in the stores was easy for us, but moving it off the shelves proved very difficult at first. What we discovered was, even natural foods consumers didn’t know what it was. We did a lot of sampling, and it was a real love/hate thing. Some people would just gag.

JF: An acquired taste…

SL: Yes. Even though our product was a little more palatable than some. Even now, less than 10% of American consumers are aware of what kombucha is. So it still has a long way to go among the so-called “early adopters.”

We determined from the very beginning that the way to go was shelf stable. Our premise is, most all the benefits of kombucha are in the acids. Those are not affected by pasteurization. But in two years time, in 2003, we were still struggling with consumers accepting the taste. It was a slow process.

kombucha marketing kombucha wonder drink brandJF: Was that a strategic error, not doing raw kombucha? Were you kickin’ yourself then?

SL: There was a five year period there of self doubt and struggle. We grew every year, but it was not like what was happening in the raw segment. The two other founders left… Didn’t want to do it anymore because it wasn’t growing like it had with Tazo or Stash.

We thought we saw the market, but it was tougher than we expected. Then in 2010 there was the mother of all recalls, when all unpasteurized kombucha brands got yanked off the shelves. Even Honest Tea had a raw kombucha that got recalled. CocaCola had a 1/3 interest in Honest Tea at the time, but they had no interest in doing anything with raw kombucha, so they just let it die. It never returned.

In order to get back on the shelves Synergy and all of them had to change the way they made their kombucha. They had to filter out most of the bacteria and prove that they wouldn’t exceed the .5% alcohol limit. We never had a problem with that, with our brand.

JF: So where’s it going now? Around here, every time your turn around it seems like there’s a new brand of kombucha popping up. You have Brew Dr., Eva’s, Hmmm, Lion Heart, and dozens of others just in Oregon. Pepsi bought Kevita. Coke’s investment arm has an interest in at least one kombucha company…

Kombucha market Kombucha Wonder DrinkSL: Yes, everybody’s going to have a kombucha. Good tasting, functional drinks are rising by leaps and bounds right now. There are different sodas with less sugar and different sweeteners. There’s Kefir. It’s changing rapidly.

SL: Our trade association, Kombucha Brewers International has 80 members. And that’s not all… there are well over 100 brands. It’s an easy product for people to launch. You can brew kombucha in your kitchen, go to a couple farmer’s markets, become enthusiastic, find and a couple local stores, and you’re in business.

JF: Sure, the kombucha market is booming, so it’s easy to launch. But it’s not, necessarily, easy to succeed in. Just because they can brew it doesn’t mean they can build a brand, like you did.

SL: That’s true. It’s too hard for too many people.

JF: Even now that’s it’s a $600 million market it’s a relatively small pie. I’m sure it’ll get to a billion dollars soon enough, and it’s going to continue to grow, but the question is, is it growing fast enough to support all the new competitors who are jumping into it?

SL: The answer is no. But time will tell. Everything’s going to happen in kombucha market. Everyone is going to experiment and there will be every form and flavor possible. But there’s always a falling out of brands. Phenomenon or not, only five out of 100 startups make it. The shakeout is happening simultaneously as more brands are launched.

But Steven Lee has launched his last company. His future now is in writing. He recently wrote a book about kombucha for Random House, and he plans to use those connections to do something else that inspires him. Something romantic.

“Once I’m done with Kombucha Wonder, I’m going to go write children’s books,” he said.

Keen branding

If you’re thinking about entering the Kombucha Market or if you have an existing natural foods company, BNBranding can provide all the insight and creative inspiration you need. Call me. 541-815-0075.  Or view our natural foods portfolio.

4

These two words are NOT synonymous: Logo. Brand.

Here’s something I heard from a graphic designer recently:  “Oh yeah, we’re going to create a new brand for that company. Totally.”

No she’s not. She’s not going to create a brand, she’s going to create a brand identity. There’s a difference. Let’s get the definition of brand straight, once and for all. It’s not the same as “brand identity” or logo.

So what is the definition of brand identity?

A brand identity project typically includes a logo and graphic standards that dictate fonts and colors for the company’s marketing materials. Sometimes we also do naming and brand messaging for a new product or company as well.

It’s a valuable service, but those graphic elements, in and of themselves, do not add up to a “Brand.”

If it’s done well, your logo is an accurate graphic reflection of your brand. But it’s just the tip of the tip of the iceberg when it comes to building a “brand.”  For the true definition of brand, you have to look deeper.

Brand is everything above AND below the surface…

The vast, floating mass below the surface is a thousand times bigger and more important than just the design work that you see on the surface.

Everything you do in business is branding. Like it or not, it all matters… The words you choose. The images you show. The social media posts you do. The values  you hold dear. The vendors you choose and the people you hire.

The sum of all those parts is the Brand.

Take Nike, for example. The swoosh is one of the world’s most recognized logos, but the Nike brand goes way deeper than that. Deeper than the advertising. Deeper than the collection of Nike-endorsed superstars. Deeper than Nike’s manufacturing practices or the products themselves.

The Nike brand is a psychological concept that’s held in the mind of the consumer. Quite simply, it’s an idea. An idea with all sorts of affiliated images, feelings, products, words, sounds, smells, events, people, places, policies, opinions and even politics.

The conceptualization of Nike, in my mind, is much different than the idea of Nike in my daughter’s mind or in Phil Knight’s mind. Business owners and chief marketing officers have a skewed image of their own brand based on insider knowledge, best intentions and dreams for the future.

The consumer’s idea of your brand is based more on history and personal experience, where one bad experience skews the whole picture.

The trick is to bring those two worlds together. Great “branding”  combines the aspirational mindset of the business owner with the realities of the customer experience and the demands of the modern marketplace.

Which leads me to another tricky term: “Branding.”

The verb “branding” is often mistakenly associated with design services. You’ll hear an entrepreneur say, “We’re going through a complete re-branding exercise right now,” which in reality is nothing more than a refresh of the logo. It’s often a good idea, but it’s not going to magically transform a struggling business into a beloved brand.

You have to do a lot more than good design work to build a great brand.

BNBranding how to choose the right message for your adsBranding is everything that’s done inside the company that influences that psychological concept that is The Brand; If you redesign the product, that’s branding. If you engineer a new manufacturing process that gets the product to market faster, that’s branding. Choosing the right team of people, the right location, the right distributors, the right sponsorships… it all has an impact on your Brand.

Not only that, there also are outside events that you cannot control that affect your Brand. New competitors, such as Under Armour, affect Nike’s brand. Personnel changes, political policies, grass roots movements, Wall Street and even  foreign governments can help or hurt the Brand.

So you see, branding is not the exclusive domain of graphic designers. It’s not even the exclusive domain of the marketing department.

I love working with great designers. When I bring a concept to the table, and the designer executes it really, really well, it’s absolutely magical. But the graphic designer and the brand identity are just tiny components of the branding equation for the client. In the course of her career a designer might craft thousands of gorgeous brand identities, but the only Brand that she truly creates is her own.

If you want more about the definition of brand, try THIS post. 

2

How to create a website that works for your brand.

For some reason, many people think that “branded websites” won’t sell product or produce a steady stream of leads. And on the other hand, they don’t think “Ecommerce sites” will help their branding efforts.

As if the two are mutually exclusive.

Well, here’s the good news: You really can have a branded website that converts well AND presents a strong brand message. But you’re going to have to go beyond the template-driven who, what, when and where approach that’s so common these days.

Here’s what you need to build a branded website that works on both levels:  The 4 critical elements of website design and effective web development.

1. A concept.

A concept is the foundation of every great site, and probably the single most overlooked element for all business owners. And let me be very clear…

A wordpress theme is not a concept.

A new logo is not a concept.

A photo of your product is not a concept.

A photo of the exterior of your building is not a concept.

A photo of your team is not a concept (unless they’re doing something rather unusual that conveys an idea about your brand.)

See, a concept is an idea.

In web design it’s an idea in the form of words, visuals and technical features that come together in compelling way. It’s image and presentation and persuasion and storytelling all coalescing to make a great first impression. So even the most casual website visitor says “hell yes, I want to know more about this company.”

branded websites that convert well - Mini Cooper

A concept from the Mini USA website homepage.

And isn’t that the job of your website? Make a great impression. Engage people. Impress them. Leave them wanting more. That’s marketing 101.

If you have a concept behind your site all the other elements will come together seamlessly. The problem is, most website builders don’t have the creativity, or the sales skills or the knowledge of your market, or the necessary budget to actually develop a cohesive concept for your site. That’s just too much to ask of one person. They can’t do all that, and then write the code to boot! That’s like asking the architect of your new house to also pour the foundation, do the framing, the plumbing, the electrical and the heating system, all by himself.

You need a team to do a good site. But let’s look at the other critical elements of web development, and then come back around to who’s going to do all these things.

2. A clear call to action

This one’s pretty simple, and it’s not just a big ass button that says “buy now.” Every page of your site should have an objective and a preferred action for the consumer. Think of it as leading them down the primrose path. You want to take their hand and show them the way…

Click here. Read this. Watch this. Listen to this. Order that.

Give the user something to do that leads them deeper into the site, and further along in the sales process. They will seldom behave how you want them to, but the alternative is a hodge-podge of pages and elements that lead nowhere.

3. Differentiating elements

A good story is your best differentiating element.

As the old saying goes, facts tell but stories sell. Narrative, characters and plot twists are universally appealing, and very few companies present compelling stories.

So find an interesting way to tell your story. Maybe it’s animation, or video, or a prezi-style slide show, or even a game.

A game can be a differentiating element as well as a concept. Can you transform your web experience into a relevant game? Would that be appropriate for your brand?

branded websites for mini cooper

Differentiating elements: Concept, photo, copy, call to action.

Photography can also be a great differentiator. The human brain skips right over familiar images, so don’t settle for the $10 stock photos that everyone else in your category is using. Hire a pro and make your stuff look better. Sexier. More graphic.

Copywriting can be the difference between a boring branded website and a lead-gen machine.

Don’t let anyone convince you that great web copy is only about keywords, search engine optimization and factual “content.” Every sentence is an opportunity to stand out — or be thrown out. (One quick click and they’re gone to the next site.) Your copy should be sharply crafted. Persuasive. And convincingly genuine, so it doesn’t sound like any other brand.

Here’s a test for you… pull up your branded website and the site of your biggest competitor. Side by side. Then imagine that the logos are swapped out. Are the sites interchangeable? The images the same? The copy comparable.

Are you saying anything they cannot say? If not, you better go back to the drawing board and get a differentiating concept.

4. Reasons to believe

Stories, concepts and images are important, but you also need some facts to back them up. That’s where some branded websites go wrong… they’re all fluff. You need proof that your brand delivers, as promised.

For instance, post some testimonials or reviews from your happy customers. Release engineering data. Competitive reports. White papers. Market research. Anything that’s credible that backs up your value proposition.

People make emotional decisions, but they often need facts to justify what they’ve already decided. So give them what they need, and do it in various forms on multiple pages. When they’re checking out, remind them that they’ve made a great decision.

A very clear brand message... this is Mini Cooper in a nutshell.

A very clear brand message… this is Mini Cooper in a nutshell.

So this is all great, in theory. But how do you get it all done?

Part of the problem is who’s doing the work… If your web developer doesn’t have anyone to collaborate with, you’re not going to get an big idea, or great imagery, or well-crafted copy.

You just get code.

It might be great code and a functional site, but it’s not going to contain the five critical elements of effective website design.

You need that programmer, but you also need a writer who can devise the concept and write the copy. Then you need an SEO specialist, a project manager and a designer. That’s the team. (Sometimes the writer or the designer can double as the project manager.)

The team approach may cost a little more at first, but it’s cheaper in the long run because you won’t have to re-do your site 9 months later when it’s not performing as you had hoped.

These days your site is a critical part of your business infrastructure. It’s your storefront and your main form of advertising. You can’t do without one, so you might was well invest in a website that builds your brand AND sells product.

Note… this is NOT a paid post for Mini Cooper, just a nod to their agency and their web design team. This is great work. Plus, it’s a cool brand.

For more about successful website, try THIS post. 

1 "Brand" Trumps Managerial Incompetence.

I need to stop being surprised by managerial incompetence. Honestly. I need to reframe my expectations and just be pleasantly surprised when I encounter an exception to the rule. Because everywhere I turn, knumbskulls, nuckleheads and nitwits rule the managerial world.

Witness the retail store owner who has no handle on her inventory or her labor costs.

The non-profit executive who has a revolving door of talent, going only one direction.

incompetenceThe managing partner of a professional services firm who constantly, habitually, over- bills his clients.

The director of communications who doesn’t communicate with anyone internally.

The CEO who can’t pull the trigger on anything more meaningful than which consultant to hire.

Failures like those are rampant. One leading consulting firm reports “with solid empirical justification, that managerial incompetence across all levels is 50%.” (Of course, their study didn’t include the companies that went out of business due to managerial incompetence.)

So the bad news is, there’s a 50-50 chance that your boss or your manager is incompetent. The good news is, half of companies you compete with are also chock full of managerial incompetence.

And here’s more good news:  It’s well documented that strong brands can weather all sorts of managerial miscues.

Strong brand affinity can help companies weather a price war. According to the International Journal of Business Research, a brand acts as a buffer when the company fails on the customer service front.  And beloved brands can weather PR storms that would make most companies melt.

Look what happened to Toyota.

branding blog about toyotaIn 2009 and 2010 Toyota recalled 8.8 million vehicles due to safety concerns with accelerator pedals.  Time magazine ran a feature story titled “Can Toyota ever bounce back.” One industry expert told CBS Anchor Harry Smith, “We’ll be seeing major problems with the Toyota brand for at least a decade, maybe two.”

Toyota’s CEO quipped that he was not Toyota’s top executive as much as the company’s chief apologizer for blunders, mishaps and overall sluggish business. It was a PR disaster, and another example of managerial messiness.

Business Insider reported “The company failed miserably in its initial crisis management, but that’s what makes Toyota’s case so intriguing. Despite its monumental mistakes early on, Toyota still bounced back. Why? It didn’t take long for the public to remember Toyota’s previously stellar reputation.”

Contrary to all the doomsday speculation, the Toyota brand made a quick recovery, recapturing its status as the #1 selling car brand in America. (In 2016 they had the #1 and #2 selling car in America.) Not surprising really, given the consistency and long-term track record of the Toyota brand.

“The Toyota brand showcased its resiliency, with its positive reputation built up over decades of good performance. The company leveraged this, focusing its marketing once again on safety and its proven track record. It had to show that this disaster — including its own horrible mishandling of the situation — was an aberration.”

branding blog about toyotaToyota has been one of the world’s most beloved brands for over 30 years. People absolutely love their Land Cruisers, Corollas Camrys and Civics. AdWeek magazine puts Toyota at #67 of the world’s top 100 brands, the highest ranking of any automobile company. (Volkswagen is the only other car brand that makes the list, at #89. Forbes reports that Toyota is the 9th most valuable brand in the world.

So what does this all mean for the typical small to mid-sized company? Here are a few lessons:

1. It pays to consistently deliver on your brand promise. Toyota’s resurgence proves that branding is a process of consistency and endurance. Year in and year out they keep delivering on the idea of reliability and resale value. So when the company hit that bump in the road, it didn’t really slow them down. What’s your brand promise, and are you delivering on that promise every day?

2. Managers make monumental mistakes. CEOs come and go, often in a flaming blaze of glory. Products sometimes fall drastically short. But if you’ve built a strong brand your devoted fans will cut you some slack. The emotional connection they have will prevail over any short-term disappointment.

3.  A solid brand platform is critical to the success of your management team. They gotta know what you stand for, and they’re not necessarily going to get it unless you spell it out for them. You have to communicate your brand promise all the time, and promote it feverishly with your team. How else are they going to understand the culture, the core values, the expectations of consumers, and the business goals? Don’t assume anything.

4. Great managers are hard to find. No one has the childhood wish of becoming a great manager, so if you have some on your team, keep them there! Reward them handsomely. Treat them like Gods. Transform their relatively mundane, under-appreciated work into something truly valuable.

5. Create an atmosphere of forgiveness, where failure is rewarded rather than punished. They’re going to make mistakes — remember the 50% incompetence stat — so you might as well embrace it.  Encourage action and let your managers know that doing something wrong is better than doing nothing at all.

6. Make every manager a die-hard brand champion. If they’re not, get rid of ’em.

For more about the power of a great brand, read this post.

1 Is the term “inspiring bank” an oxymoron?

It’s interesting, where people find business inspiration. For some, it’s the pages of Forbes or biographies of big-name entrepreneurs. For others it’s an impressive P&L statement. For me it’s the bookstore, the ski slopes, or the golf course.

old-bankThe bank is definitely not where I would look for inspiration.

Banks are not known for their inspiring environments or groundbreaking business practices. The most exciting thing to ever happen at my bank was the emancipation of the counter pens…  They were released from their chains and replaced with crappy logo pens that are now free to take home with just a purchase of a $10,000 15-year Certificate of Deposit.

Nope. The banking industry is the last place I’d look for business inspiration or marketing insight. That is, until I met Ray Davis, the CEO of Umpqua Bank.

business inspiration from the brand insight blog and Umpqua BankTurns out, he’s not inspired by the banking industry either.

According to Davis, the key question driving strategy discussions at Umpqua has been, “How can we get people to drive by three other banks to get to ours?” That question has steered the bank’s team to look outside the financial sector for inspiration. For instance, Umpqua’s brand has been heavily influenced by the retail industry. “Build the branches around interactions, not transactions.”

Umpqua Bank has grown from $140 million in assets in 1995 to $24 billion in assets. Today it has 350 stores in three states, but perhaps more importantly for the brand, Umpqua has been included in Fortune Magazine’s list of 100 best places to work  — eight years in a row!

Bankers and banking consultants from all over the world visit the Umpqua headquarters in Portland and the San Francisco branch to see what they’re doing and how they’re doing it. And what’s even more impressive is that executives in completely different industries are also looking to Umpqua for inspiration.

Turns out, we really can learn from a bank when it comes to branding.

So what’s behind it? What’s turned this small town brand into one of the fastest growing banks in the nation?

inspiring bank brand insight blog post by BNBranding a bend, oregon advertising agency“Umpqua started to take off once we realized what business we’re really in,” Davis said. “I don’t believe we’re in the banking industry. We’re in the retail services business.”

When Davis applied for the job at Umpqua he warned the Board of Directors that he was going to throw out all the old conventions of the banking industry and start something completely different. Because he believed they couldn’t compete against the big guys in any conventional way.

“Banking products are a commodity,” Davis said. “You can’t differentiate yourself that way. The big guys are just going to copy any good new product we come up with. But they can’t copy the way we deliver the service. They can’t copy our experience.”

For that, he borrowed ideas from two great retailers… Nordstrom and Starbucks. Umpqua stores look more like the lobby of a stylish boutique hotel than they do a bank. You can settle into a comfortable leather chair and read all the leading business publications. Have a hot cup of their Umpqua blend coffee. Check your e-mail or surf the web. Listen to their own brand of music and maybe even make a deposit or open a new account. Who knows.

It’s a dramatic leap when you compare that experience to the cold, marble standards of the banking industry.

Clearly, Davis knows how to execute. He doesn’t talk about “execution” per se, but he obviously has the discipline to match the vision. He’s knows how to motivate and how to manage an organization through dramatic changes. And he’s built a corporate culture that aligns with the brand promise.

2014.10.17_Umpqua_BankHere are some of the things Davis has successfully implemented and some reasons why his bank is now on my inspiration radar…

• Random acts of kindness:  Local Umpqua teams just do good stuff, like buying coffee for everyone who walks into a neighboring Starbucks. They don’t have to ask permission.

• They get their customer service training from Ritz Carlton.

• Every Umpqua employee gets a full week of paid leave to devote to a local charity. That’s 40 hours x 1800 employees! Any other banker would do the math and say it’s too costly. Davis says it pays off 100 fold.

• They have their own blend of coffee. Shouldn’t every great brand have its own blend of gourmet coffee?

• Proceeds from Davis’ book “Leading for Growth. How Umpqua Bank Got Cool And Created A Culture of Greatness”go to charity.

• They invented a way to measure customer satisfaction. As Fast Company Magazine put it: Umpqua Bank has a rigorous service culture where every branch and each employee gets measured on how well they deliver on what they call “return on quality.” Our research division, BNResearch, handles that kind of work for another innovative, billion-dollar company in an even less glamourous industry… veterinary medicine.

• They embrace design as a strategic advantage. At Umpqua branches, everything looks good, feels good, and even smells good!  It’s the polar opposite of a crusty old bank. It’s a pleasing environment, which makes an unpleasant chore much nicer.

• Davis GETS IT! He knows, intuitively, that his brand is connected to their corporate culture. “Banking executives always ask, ‘How do you get your people to do that?’ It’s the culture we’ve built over the last 10 years. It doesn’t just happen. You don’t wake up one day and say, gee, look at this great culture we’ve got here. Our culture is our single biggest asset, hands down.”

Umpqua-bank-interactive• He’s a great communicator. Davis doesn’t use banking stats to motivate and persuade. He uses stories, analogies and real world examples.

• He embraces the idea of a big hairy audacious goal. In fact, everyone answers the phone “Thank you for calling Umpqua Bank, the world’s greatest bank.”

So the next time I’m looking for inspiration, maybe I’ll skip my usual haunts and head down to the bank for a cup of coffee.

For more inspiration, try THIS post.

For inspiration regarding your own marketing efforts, call me at BNBranding.

 

4 ipod branding on the brand insight blog

Zero-in on Branding success.

I love this saying: “The main thing is to keep the main thing the main thing.”  I think Steven Covey coined that one.

the main thing for a top 100 branding blogWhen you boil it all down, that’s the essence of branding success: Zero-in on one thing you can honestly, passionately, expertly hang your hat on, and stick with it. Then when it comes to marketing communications, come up with one idea to convey the main thing, and just pound that home in every way, shape and form you can afford. One idea, multiple executions.

Unfortunately, most business owners and brand managers don’t have that kind of focus. Once they get a taste of success in one little niche, the temptation is just too much… They take their eye off the main thing, and dive into a lesser thing, hoping it will become the next big thing.

It seldom works out that way. The single biggest barrier to success, especially for young brands, is lack of focus.

Geoffrey Moore spelled it out in his seminal work, “Crossing the Chasm: “Target a specific niche as your point of attack and focus all your resources on achieving dominant position in that segment. It’s far better to be the big fish in a smaller pond, rather than flopping around in several small puddles.”

Al Ries and Jack Trout call it the most violated of their “22 Immutable Laws of Marketing.”  They rail against line extensions and point to IBM, Microsoft, Levis, Heinz and this classic case: Crest.

viewdental116eBay_Store_Jan_1959_Crest_Little_Boy_001It used to be very clear… Crest fights cavities. That was the micro script for the brand. The Main Thing. Crest was the “first mover” in the cavity prevention category and it was a strategy that worked brilliantly, cementing Crest as the #1 toothpaste for more than 30 years.

Unfortunately, over time, other toothpaste brands entered the same niche and everyone seemed to offer cavity prevention. Crest abandoned the claim and didn’t find anything to replace it. After holding almost 40% of the market through the 1970s, Crest’s position began to erode at about the same time they launched their first brand extension”Advanced Formula Crest.”

Now there are 41 different kinds of Crest toothpaste. Count ’em!  Crest Complete Multi-Benefit Extra White, Crest + Scope, Crest Lasting Mint, Crest Pro-Health Clinical Gum Protection, Crest Invigorating Clean Mint, Crest glamorous white, Crest vivid white, Crest baking soda & peroxide, Crest gel, Crest liquid gel, Crest whitening, Crest gum protection, Crest fluoride anti-cavity and sensitivity relief and even Crest Night Toothpaste.

Give me a break! The Main Thing now for Crest is just the next new gimmick. And it’s no longer the #1 brand.

Marty Neumeier in “Zag” says… people want choice, but they want it among brands, not within brands.” All that Crest clutter just dilutes the brand and confuses the consumer. We have no idea what Crest stands for anymore.

It’s natural for successful owners and marketers to lose focus and start adding stuff to their portfolios of goods and services. They don’t want to miss any opportunities, and they argue that many successful companies have a wide range of products. Apple, for instance.maxresdefaultiPodposter

ipod-advertising1But every Apple product is designed around the one Main Thing: Delightful Simplicity. All the innovation, design and technological prowess of Apple comes together in those two words. That’s the heart of the Apple brand.

Remember this spectacular product launch for the iPod. Even the advertising was delightfully simple. The white cord let everyone know you were listening to something different. And the graphic execution of the ads was a huge branding success.

But you’re not running the world’s most valuable company. And chances are, you don’t have the main thing really nailed down. When you do, things will become easier.

Reis and Trout say: “Focus is the art of carefully selecting your category and then working diligently to get your self categorized in people’s minds.”  In other words, branding success is a process.

A good way to start is by saying no. Because what you DON’T do is just as important that what you do do.

Say no to the new investor that thinks you should add a mobile app to your mix. Say no to the engineers who say “we can do this, wouldn’t this be cool.” Say no to the marketing consultant who says you’re missing a great opportunity. Say no to the guy who thinks you should open another location. Sometimes you even have to say no to your biggest customer.

It’s not easy, and it’s often unpopular within the ranks, but that’s what focus is… NOT trying to be all things to all people.