A lot of people ask me about brand design and the graphics that accompany these blog posts.
They see the same visual cues on my website, in social media posts, in ads, on video and even on good, old-fashioned post cards, emails and invoices.
They comment about the work on LinkedIn and, yes, they respond to it. A few people have even said, “Wow, that’s really cool. Can you do something like that for my company?”
Because the fact is, bold graphics such as these stop people in their tracks. As prospects are scrolling quickly through a Facebook feed, they breeze right over all the stuff that looks the same as everything else… Stock photos, charts and graphs, head shots.
They only pause when they see something that “Pops.”
On the other hand, we are wired to ignore the images, sounds and words that are familiar to us.
So familiar words, sounds and imagery do not belong in your advertising efforts.
Thanks to an increasingly fragmented marketing landscape, the need for consistently UNfamiliar visuals is on the rise. There are just so many different marketing tactics these days, it’s hard to get them all aligned into one, cohesive campaign. Most companies lose that “Pop” they could get by maintaining visual consistency across various platforms.
The same goes for sounds. The very best Radio, TV and video campaigns include unique sound cues that tie all the components of the campaign together. For instance, I wrote an award-winning radio campaign for a glass company, and the audio cue couldn’t have been more clear… the squeek of windex on a window.
It was an audible punctuation mark that proved very successful.
Visual punctuation marks, such as the images in our “Be” Campaign, can make small budgets look big. It’s one of the little things that small businesses can do to become iconic brands in their own, little spaces.
Tom Peters, in his book The Little Big Things, says “design mindfulness, even design excellence, should be part of every company’s core values. Because the look IS the message. Because design is everything.”
As Peters said, every message out there is branding. You can’t differentiate sales messages or social messages from brand messages. It’s all connected. You might as well make them look that way.
Consistent, unexpected brand design is the easiest way to improve the impact of your messages and leverage your marketing spend.
If you’re not thinking about branding and design aesthetics when posting something on LinkedIn or Instagram, you’re missing a huge opportunity. People will just scroll on by.
If you’re not thinking about design when crafting headlines for your website, you’re not seeing the big picture. People will just click right out.
If you’re not thinking about your brand image when choosing a location or decorating your office space, you’re missing the boat.
Design is just one element of your overall branding efforts. But it’s an important one. Too important to ignore.Because every time you hammer home those visual cues, you move one little step closer to your objective.
If your business needs a stronger visual presence across all marketing channels, give us a call.
Small-business owners are naturally self-reliant. We’re all in business for ourselves because we have that classic, American mentality that says we should get our hands dirty and pull ourselves up by the bootstraps.
Damn the torpedoes!
According to the SBA there are 27.9 million small businesses registered in America and 22.5 million of those are “non-employer” companies. That’s a lot of one-person firms.
Not only that, the vast majority of those small businesses are started by technicians… Skilled specialists such as lawyers, auto mechanics, programmers, artists, plumbers or writers.
They’re experts in a trade, not in business. They might not have one speck of experience in small business marketing, management, finance, or any other business discipline.
They just know how to do the work.
These tenacious, small-business do-it-yourselfers often make the fatal assumption that because they’re good at the technical work of a business, they understand the business itself.
That’s just not true. A plumber knows how to run pipe, fix leaks and do the work. He doesn’t necessarily know how to run a plumbing business.
That’s the crux of The E Myth, by Michael Gerber. If you have a business, or are planning to go into business of any kind, you need to read that book.
There’s a big difference between a DIY business owner and an entrepreneur. The DIY business owner creates a job for herself. The business is entirely dependent on her own skills.
The entrepreneur creates an enterprise that’ll provide jobs for many. It’s built with an eye toward growth and a future acquisition by a corporation. It’s bigger than any one person.
As Gerber puts it, the DIY owner goes to work IN the business, the entrepreneur works ON the business.
The DIY owner does all the small business marketing herself. The entrepreneur hires smart people who implement a systematic approach to marketing.
The DIY owner is constantly scrambling to make widgets and get them out the door. The entrepreneur creates business systems that automatically deliver the widgets.
Architects are almost always DIY owners. Just because you can design great buildings doesn’t mean you can run a great architecture firm.
Talent, by itself, isn’t a guarantee of success.
Yet here’s what often happens: Two or three key people in an established architectural firm leave with a few clients, just knowing they can do it better on their own. But then they start a company that’s cut from the exact same cloth as the last place they worked. They use the same accounting software, the same small business marketing strategy, the same fee structure, and even the same value proposition.
The only thing that’s changed is the location and the letterhead.
The two founders dive right into the work of architects, and they neglect the work of an entrepreneur or manager.
So why are they surprised when they run into the same challenges and problems that their former employers experienced?
Those two DIY owner architects have to do a lot more than just architecture. They also have to wear the marketer’s hat, the manager’s hat, the HR hat and the entrepreneur’s hat.
It’s a tall order.
Nobody’s good at everything. Plus, it’s human nature to gravitate toward what you’re good at, and neglect the other stuff. So in most small businesses there are many tasks that get shoved to the side.
If you’re starting a business, or if your current business is stagnant, do an honest assessment… are you a DIY owner, or a true entrepreneur?
There’s nothing wrong with creating a job for yourself and just being a busy, DIY business owner. You probably won’t ever become a multi-millionaire, but you can make a good living doing the work you love. And you’ll enjoy the freedom that many people covet.
Cheers to that!
If you decide to be a DIY owner, some word of mouth advertising and a little bit of social media might be the only marketing tactics you need.
But if you want to grow your business and be a successful entrepreneur, you’ll need much more than that. You’ll need a systematic approach to marketing, and to your entire business.
If you want to be an entrepreneur you may have to stop doing the work you really love. Either that, or you’ll need to find a true entrepreneur to partner with… an experienced business person whose skill set will balance nicely with your skills as a specialist.
Here’s an example of a specialist who approached his business as an entrepreneur from day one.
In 1985 Scott Campbell graduated from OSU Veterinary School and bought a small-animal veterinary clinic called Banfield Pet Hospital in Portland, Oregon. But instead of spending all his time treating fleas and ticks, he immediately started working on the business model.
Campell’s brand was built with one clear purpose in mind: To provide a better level of care for pets and a better model for the veterinary care industry. He did everything that Michael Gerber recommends in The E Myth…
He devised a long-term strategy. He built new business systems and installed computers. He hired BNResearch to do market research and carefully track customer satisfaction. He basically reinvented the way vets do business.
Scott Campbell didn’t work in his business, he worked on it.
In true entrepreneurial fashion, Campbell took the lone, Banfield Pet Hospital and built it into Medical Management Inc, (MMI). When the company was acquired by Mars, Inc. in 2008 there were over 500 Banfield Pet Hospital locations worldwide, each doing approximately $2.5 million a year.
That might make Scott Campbell the world’s first billionaire veterinarian.
He wasn’t just passionate about pet care. Every vet is passionate about that. He was obsessive about building a business that would provide better health care for pets around the world.
Every DIY business owner is passionate about her line of work. Otherwise, she wouldn’t have gone into that business in the first place. But very few are obsessive about the business of their work.
Most artists are intensely passionate about their painting, or their photos, or their poetry or whatever. But they’re not obsessive about the business part of it. On the contrary… Many absolutely hate it.
But here’s what you need to realize if you’re going to be a successful, DIY owner: You don’t have to do everything well in order to succeed, you just have to do a little more than the next guy.
Yeah. The bar is surprisingly low when it comes to small business marketing and management.
Most of your competitors will also be DIY owners who are NOT following Gerber’s advice. So if you just work ON your business a little bit, you’ll have a competitive advantage over those who only work IN their businesses.
A good place to start is with your marketing.
These days, marketing is a ridiculously confusing jumble of options. Very few small business owners can navigate all that, and still keep up with all their other duties.
So put on your entrepreneur hat, for just a minute. What would she do differently?
She’d hire an experienced marketing person to manage all the moving pieces and put some systems in place that would produce long-term growth. And in the process, she would make life way easier for herself.
That’s the secret to success for DIY owners… find at least one key task that you hate to do, and outsource it to experienced pros. That way, you’ll have more time to work in the business, doing what your love.
If you decide to make the leap in the entrepreneurship, well, either way you’re going to need some help with your marketing. If you want to take your business to the next level give me a call at BNBranding. 541-815-0075.
It was said to be Steve Jobs’ last great obsession… Apple Park. The corporate headquarters that looks like a spaceship from a 1950’s sci-fi story. 12,000 employees in one building. 2.8 million square feet of space. The world’s largest panels of curved glass. 9,000 draught-tolerant trees. 5 billion dollar price tag.
The ultimate expression of the Apple brand under Jobs. And big-league brand alignment.
Steven Levy recently wrote a fascinating feature about Apple’s new flagship for Wired magazine. For that piece, he interviewed Apple’s Chief Design Officer, Sir Jonathan Ive.
Ive has overseen the design of every Apple product since 1997. Since Design is the heart and soul of the Apple brand, one could argue that Ive is the heart of Apple.
“It’s frustrating to talk about this building in terms of absurd, large numbers,” Ive said. “While it is a technical marvel to make glass at this scale, that’s not the achievement. The achievement is to make a building where so many people can connect and collaborate and walk and talk.” The value, he argues, is not what went into the building. It’s what will come out.
More fantastic designs. More signature products from the world’s most valuable brand.
Brand alignment involves a lot of things… It’s how you communicate the Brand to your employees. It’s the events you sponsor and the companies you’re affiliated with. It’s the consistency of your messaging and graphics. It’s product design and yes, it’s even the design of your new office.
In Apple’s alternative universe, the giant circular ring of glass is perfectly aligned with the brand.
All Fortune 500 companies spend enormous sums on corporate headquarters. Because they understand that it really does matter to their most important brand ambassadors… employees.
Your space says something about your brand and your culture. No matter how big or small your company is.
Famed architect Frank Gehry designed this building for Chiat Day Advertising. Now it’s occupied by Google.
Small professional service firms should also spend a lot of time and money on office space.
When you’re selling a service, and have no tangible product, your workspace is an important physical manifestation of the brand. In fact, depending on the business you’re in, your office space might be the single most important example of brand alignment.
For instance, when it comes to selecting an ad agency, office space always figures into the equation. The workspace is a tangible display of the agency’s creativity and “out-of-the-box” thinking. (Or lack thereof.)
Clients love doing business with the cool kids in the cool offices. They want to go somewhere that feels different, more energized or more “free” than their own place of business. It’s an escape from their normal, day-to-day reality. Clients feed off that. (Take a tour of Weiden & Kennedy’s Portland headquarters and you’ll see what I mean.)
If you’re an architect or an interior design firm it’s even more important… Your office space is an everyday opportunity to show off your work. It’s “Exhibit A” in the firm’s portfolio. It better be impressive.
For attorneys it’s about showing off their ivy league law degrees and proving, somehow, that they’re worth $450 an hour.
Cue the leather sofa and the $20,000 desk.
Harry Beckwith, in “What Clients Love,” tells how State Farm Insurance chose a firm to handle a huge payroll and benefits contract. They looked at all the proposals, narrowed the field, sat through presentations and listened to pitches from several very capable companies. They were all pretty comparable in price and service.
Then they dropped in, unexpectedly.
The State Farm guys walked through the offices of each competing firm, said a quick hello to their contacts, and chose the office that “felt the best” based on that one visit.
It’s a completely irrational, emotional, gut-instinct thing. (Have you ever walked into a restaurant and just felt an instant, knee-jerkingly negative vibe?)
First impressions matter. Details matter… Location. Colors. Layout. Even the coffee you serve says something about your brand. Is your company percolating along on Folger’s, or is it serving up a hot shot of espresso with a perfect crema on top?
Ask yourself this: Is there a disconnect between what people see in your marketing materials and what they experience in your office? Be honest.
Is your office space in alignment with your brand and your corporate culture? Many small companies that are genuinely warm and inviting in person maintain offices that are far too chilly and corporate. They’re trying so hard to look big and important they overstep their own brand personality.
Big banks work hard to make themselves sound friendly and personable in their advertising. Then you walk into any branch, and the decor is vintage 1990s institutional snooze fest. And unfortunately, the customer experience is usually aligned with the decor. (One notable exception is Umpqua Bank.)
Ideally, you want to align the look, feel and functionality of your office space with the brand personality, culture and operation of your company.
Easier said than done.
You can’t just take the “about us” section of your website and hand that off to an interior designer and expect a miracle.
If you’re moving into a new space, or thinking of a refresh of your current office, it helps to go back to an honest assessment of your brand… To your core values and your main messages that always seem to get relegated to internal documents and forgettable, corporate mission statements.
Your brand needs a bible.
That way, you always have a usable reference point. A testament. A philosophical road map that can be the inspiration for your marketing efforts, your business initiatives and your latest office makeover.
So when you’re looking at colors and carpet and furniture you can hold up the bible and say, “is this on brand? Is this really us?” Is this the right direction?
When I’m working with a new client I always start with that fundamental. I work with companies to spell out their brand and put it down on paper.
It’s not easy. It requires research, a lot of listening on my part, and a lot of soul searching from the client. (More than most people ever have time for.) But it saves tons of time later on by eliminating false starts when we’re working on tactical marketing items like digital advertising, a trade show booth, a powerpoint deck, or a new corporate video.
Or new interiors, for that matter.
“The right input is crucial for corporate jobs,” says Lisa Slayman of Slayman Design. “When clients are wishy-washy about their brand… that’s when things get difficult. The best clients are the ones who are clear about what their company stands for. What their brand is. When I see it down on paper, that makes it a lot easier to translate to the interior design job. It makes every decision easier.”
Getting the brand message right and communicating it quickly and clearly is one of the most important things you can do as a business owner. You can’t have brand alignment if you don’t have your brand defined.
Your brand bible should inform hiring decisions, marketing decisions, operational decisions and even finance decisions. It should unite people and provide the crystal clear marching orders you need to move continually in the right direction.
If you don’t have one, call me.
When you approach new office space from a strategic, brand perspective the interior design becomes another opportunity to reinforce a specific set of values and beliefs. You can integrate your brand aesthetic into the everyday lives of your people and your visitors. So if some prospective client just happens to pop in, you’ll leave the right impression.
The brand impression.
Here’s what Apple CEO Tim Cook said about the new Apple Park… “Could we have cut a corner here or there? Sure. It wouldn’t have been Apple. And it wouldn’t have sent the message to everybody working here every day that detail matters, that care matters.”
Every business needs photos… (Your brand image can’t be built on words alone.) Unfortunately, most people turn immediately to free stock photo sites. Doesn’t matter if the images are for the website, ads, sales materials, email campaigns, social media posts or powerpoint presentations, they go to the same source every time.
The problem with cheap stock photography, in most cases, is this: It bores people to death. The eyes instantly glaze over because the brain’s saying “I’ve seen this a thousand times. There’s nothing new or interesting here.”
How many times have you heard this cliché on a local radio ad… “our friendly, courteous staff is here to help with all your _______ needs, blah, blah, blah.”
Chances are, you changed the channel before they could finish the sentence.
Crummy stock photos have the same effect as verbal clichés.
Please, dear God, not another fake image of your “friendly, courteous staff.” The image above is the classic, customer service visual cliché, and it’s just as bad for business as the blather you hear on local radio commercials.
Unfortunately, stock images like that have become ubiquitous in the corporate world. ShutterStock alone has more than 100 million images to choose from, and most of them only cost a few bucks apiece. The internet has made it way too easy to drop-in mediocre images.
Advertising agency art directors work really hard to avoid the milk-toast visuals that are so prominent on low-cost stock photo sites. Unfortunately, it takes a lot of time to sift through the stock libraries just to find something that’s sorta close to what’s really needed. Very, very rarely do you find the perfect image for the job.
Sometimes it’s more cost effective to just commission a great photographer to do it right. And it’s always a better creative product.
Unfortunately, clients often balk at the photography line item in proposed budgets. They assume that the perfect photo’s just waiting to be downloaded for ten bucks. At the touch of a button.
Mike Houska, commercial photographer and owner of Dogleg Studios, says easy access to so many images is both a blessing and a curse… he’s selling more stock photos (rights-managed) but the assignment work is harder to come by.
“The royalty-free stock images are so cheap and easy to get, it’s pretty much eliminated all the low-end and middle budget work,” Houska said. “Back in the day, buyers had to comb through a bunch of giant stock catalogs, then call the stock company to do a search that may or may not turn up something. It was a hit and miss proposition at best, and the stock shots weren’t cheap. Now you can easily find a hundred images that roughly fit your criteria. They’re not great, but they’re close, and that seems to be close enough for a lot of people.”
“Close-enough” may work out for the photographers selling their stock images online, but it doesn’t work well if you care about your brand image.
“When you’re selling stock images, it’s just a volume game,” Houska said. “Those photographers want their images to be uploaded a thousand times over, so they make them as generic as possible. In that case, a picture’s definitely not worth a thousand words.”
The question is, do you really want to hang your hat on a photo that’s already being used by hundreds of other companies, including your competitors? Or do you want a compelling image that will help differentiate you from everyone else?
“Close enough” means you’ll look just as boring as everyone else.
Let me pose this… does a “close enough” mentality fit with your corporate culture or your personal approach to business?
What would happen if the engineering department just said, “oh well, that’s close enough”? How’s that going to work out for you?
The fact is, your brand image should be just as important to you as the quality of your product.
I’ve been involved in many photoshoots for country clubs. (Now that’s a cliché just waiting to happen.)
There are thousands of decent stock images of golf we could use. And these days, everyone seems to think that drone footage is the answer. But stock photography or drone fly-overs are a dime a dozen.
There’s nothing that will lead the viewer into the experience or tell the authentic story of a particular club. The vast majority of stock photos won’t offend, but they won’t impress either.
So we don’t use any of them. Mike Houska at Dogleg Studios sets up every shot with the painstaking attention to detail that makes custom photography worth every penny.
This shot is a good example. It exemplifies everything that this club is all about. Sure, it’s a beauty shot of the golf course, but it’s also a story of friendly competition, camaraderie, social life and hope.
I believe that successful brands are built on three things: credibility, relevance and differentiation. Cheesy stock photos can hurt you in all three areas…
If you’re trying to convey a message of quality, your credibility goes right out the window with a cheap stock shot. If the shot’s used by anyone else, differentiation is out of the question. And there’s nothing relevant about an image that’s designed to appeal to a mass market of consumers age 25 to 54.
So the next time you’re thinking that another stock photo will help your brand image, stop for a minute and ask yourself this: Will this image add anything to the story I’m trying to tell here? Does it support a specific idea, or is it just beige window dressing.
Or worse yet, is it just another visual cliché, like the good-looking customer service rep with the headset? If it is, dump it.
The bottom line is, stock photos are a fantastic resource, but marketers and designers need to do a better job selecting the images.
The problem with stock photography isn’t the photography, it’s the judgement of the person choosing the image. There are great shots to be found, so either spend a lot more time refining your search, or hire someone to get the right shot for the job to begin with. Your brand image will be better for it in the long run.
Another option is to develop your own, proprietary graphics that actually tie-in to the brand identity. For instance, at BNBranding we use a series of images like this to help drive home our points, without resorting to stock photos that are nothing more than borrowed interest.
I’d like to hear about the worst clichés you’ve ever seen in marketing. Visual or otherwise. Post a comment, or e-mail me personally: email@example.com.
Naming a business is tough. I’ve conjured up business names, product names, non-profit names and even names for corporate marketing initiatives. Here’s one thing I’ve learned:
Naming a baby is much easier than naming a business.
First of all, with baby names there are only two people who have a say in the decision. Just mom and dad. It’s a simple democratic process where the wife always has veto power over anything the husband comes up with.
When you’re naming a business or a new product you have to build consensus and get buy-in from many people. Sometimes there are even committees involved, which usually lead to winning names like “Poolife” for a swimming pool cleaning company.
There aren’t any trademark laws protecting children’s names. You’re free to call your son Sam, even if there are seven other Sams in your neighborhood.
Doesn’t work that way in the business world. There are hordes of lawyers who do nothing but trademark protection and application work. So if your product name even sounds like something that’s already out there, you’re in trouble.
Case in point: There was a little coffee shop in the small town of Astoria, Oregon that got sued by Starbucks for trademark infringement. It was called Sambucks.
When you’re naming a baby you can refer to all sorts of books and websites full of perfectly acceptable names with all their hidden meanings and Latin derivatives. With company names, you have to rule out every name that’s ever been used before and start entirely from scratch. You can’t even go through the family tree and choose some obscure middle name, like you can with a child.
And then there’s the whole translation issue.
Face it, you probably don’t care what “Clark” means in Hungarian. But there are dozens of stories of product names like the Chevy Nova, which didn’t translate real well. (In Spanish, Nova means “does not go.”)
If you’re doing business globally, your naming project just got astronomically harder.
And here’s an important distinction: your child’s livelihood doesn’t depend on people remembering his or her name. Sure, unfortunate names like Major Slaughter, Ima Nut or Moon Unit might cause a lifetime of grief, but they won’t make or break the poor kid’s career. In business, it’s hard to overcome a really bad brand name.
Most people don’t need professional help to come up with a good baby name. Business names are a different story. The do-it-yourself approach usually results in one of three types of lame names:
• Overly clever, pun-filled names like The Hairport or The Family Hairloom. Har har.
• Totally boring, literal names like the now defunct Third Street Coffee House… Mediocre coffee on a mediocre street.
• Names that backfire completely when applied to internet URLs: Need a therapist? Try www.therapistfinder.com. Need some good art, go to www.speedofart.com. Looking for a nice pen? www.penisland.com.
A good name can be costly, but not nearly as costly as blunders like that.
This might be a great screen printing company, but the name…
So save yourself a lot of time, money and frustration and just hire a branding firm to help from the very beginning. Not a design firm… they focus on the language of images, not words. And not an ad agency… For some reason, ad agencies love to use one-word names that are just too cool for school. Like “North” “Red F” “Citrus” “Fuel” If you want to confuse people, just follow that lead.
Here are a few other examples of names, both good and bad:
• Federal Express decided to shorten its name, and became Fed Ex. A smart move, considering that’s what everyone called them anyway. Besides, repainting all their jets with the new shorter logo saved the company millions year in fuel costs alone.
• Dress Barn??? How many women will admit to shopping there, much less bring herds of friends in? Tough to be a brand ambassador for a place called the Dress Barn.
• Drug companies spend billions every year on names, yet they come up with some of the worst: “Nasalcom” for an inhaled antihistamine. Sounds like a rat poison that works when they sniff it. “Vagistat” for a yeast infection medicine. “Cutivate” for a skin condition medicine. “Aspercreme” for an ointment that doesn’t even have any aspirin in it. “Idebenone” for neurological disorders. The list is long.
Viagra, on the other hand, is a great drug name. It says virility and vitality and conjures romantic images of Niagra falls.
Here are a few of my own: PointsWest for a resort development on the west side of Bend on the edge of the Deschutes National Forest. “Sit Down Dinners” for a family-style personal chef service. “Aspire” for a smoking cessation program. Widgi Creek for a golf club. (No one knows what Widgi refers to, but they sure remember it.)
Before you spend a dime for your sign or your website URL, spend some focused time naming your business. There are many considerations… How it sounds. How it looks in type. Is it legally protectable? What are connotations of the word? Does it translate? Is it confusing?
Your name is the foundation of your brand. So if your business IS your baby, get started right with a memorable name. Call BNBranding for affordable help with your brand name and identity. Or check out this post for more info.
Interview with Steven Lee of Kombucha Wonder Drink.
In 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.
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. 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…
We 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.
In 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.
JF: 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…
SL: 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.
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.
Marketing is full of colorful characters… Data nerds, creative prima donnas, wordsmith poets, actors, spreadsheet managers, order takers, MBAs, planners, directors, programmers, guru tweeters and on and on. Successful marketing management hinges on the mix of these characters.
You have to choose carefully, decide who should lead, and practice good casting. If you put the wrong person in the leading role, you could be in trouble. And if the bit players are not well directed you could end up spending a lot of money for very little return.
It’s a common problem. Finding the right advisors is always difficult, especially when the owner or CEO is inexperienced, insecure, or just not very well informed about marketing.
In many companies there is one character lurking in the shadows who steals the show and becomes the defacto marketing director. Even though she may not have a lick of marketing experience, she controls the decisions that make or break the company’s marketing programs.
Her influence is disproportionate to her skill or experience.
In mythology, screenwriting and literature, this character would be referred to as a “shapeshifter.”
Shapeshifters are two-faced. They are pretending to be something they are not and it’s not unusual for them to change alliances frequently. These characters add uncertainty and tension to any story, and they’ll do the same for your marketing efforts. They’re not to be trusted. (Example: Severus Snape in Harry Potter.)
In real life business the shapeshifting character could be a secretary, an outside consultant, a hot-shit sales person or even the spouse of the owner. It’s always someone who has the ear of the CEO, and it’s usually someone who’s been around the company for a long time and “really knows the customer.”
When CEOs abdicate responsibility to a shapeshifter, things get messy. The brand story gets convoluted. Efforts get duplicated. Time is wasted. Morale throughout the company plummets. Money gets thrown at problems that don’t even exist. And, inevitably, the marketing programs perform quite poorly. There is no curtain call.
Here are four characters that I frequently find elbowing their way to the front of the stage:
The Social Media “Guru.”
Back in the 90’s many business leaders mistakenly equated sales with marketing. So marketing departments were commonly run by sales guys.
Now it’s the social media specialist who often becomes the defacto marketing director.
But anyone with a cell phone and opposable thumbs can dub themselves a social media guru. She might do a good job of “getting your name out there” on the various platforms, and she might even generate exceptional engagement with her friends, but that’s not the whole picture.
I love this analogy from Peter Shankman, from the Business Insider: “Being an expert in social media is like being an expert in taking bread out of the fridge. He may be the best bread taker-outter in the world, but the goal is to make a great sandwich, and he can’t do that if all he’s ever done is take bread out of the fridge.
The Kid with a Drone and a Title.
Drones are all the rage right now. Many people seem to think that those epic aerial shots of their building and parking lot are all they need for TV commercials and a “killer” social media presence.
I even know one college kid who has a drone and the enviable title of “director of marketing.” And it’s not a small company. We’re talking hundreds of thousands of dollars in his marketing budget.
Hold that joy stick just one doggone minute. What’s missing from that equation?
Just because he can fly a drone without killing innocent by-standards doesn’t mean he can pilot a comprehensive marketing effort. If that same kid knew how to run the latest, greatest spreadsheet program would you make him CFO? I don’t think so.
This is a common scenario in family-owned businesses… The owner/CEO uses his wife to “do the marketing.” Which means she’s doing an occasional social media post, some fliers, and website updates.
Sometimes it’s the administrative assistant who fancies herself a marketing person. Since she controls scheduling and information flow to the CEO, she’s in the position to also control everything he sees regarding marketing. She can easily undermine the best efforts of the actual marketing staff or any outside agencies, especially when it comes to subjective decisions on creative issues. So it’s a recipe for disaster.
So here’s some advice for marketing management…
If you’re a business owner make sure you find a genuine expert in marketing management to be your leading lady. Get a generalist who knows how to keep all the other performers performing. Once you decide who that’s going to be, structure your business so that person has real authority, and don’t let anyone undermine that.
If you’re an outside agency providing marketing services, watch out for the shapeshifter who threatens to sabotage your work. Identify her early. Either make her your ally and work with her, or convince the CEO that she doesn’t belong in his cast of marketing characters.
If you’d like help leading your marketing efforts, call me. We’ll make your life a whole lot easier. 541-815-0075
Kevin Plank, CEO of Under Armour, likes to tell the story of his origin as an entrepreneur. And it always revolves around focus…
“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.
Often 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 in tough tee shirts. 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.
When 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 t
he 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.
Clarity is the key to many things. Marriage, international relations, politics and parenting would all benefit from more clarity.
But let’s stick to the subject at hand; Business Clarity. Specifically, clarity in branding, advertising, marketing communications and management in general.
Business is an ongoing war of clarity vs. confusion. Simplification vs. complication. Persuasion vs. nonsense. Straight talk vs. bullshit.
Doesn’t matter what form of communication we’re talking about — from a quick tweet or a simple email to an in-depth webinar or long-term TV campaign — you need to be clear about what you’re trying to say.
Eighty percent of my professional life has been spent helping clients clarify things. The message is almost always clear in their own heads — and maybe to a few insiders — but something always gets lost in translation.
The fact is, words matter! Images matter. A single misused word, photo or graphic can derail entire campaigns and leave your most important audience scratching their heads.
Want to avoid low morale and high turnover? Be clear with your people.
A Gallup Poll on the State of the American Workplace showed that fully 50% of all workers are unclear about what’s expected of them. And that lack of clarity causes enormous frustration. So managers need to set clear goals for the company, the teams, and every individual in every department.
When confusion runs rampant, it costs a bundle.
So don’t just whip out that email to your team. Take time to think it through. Edit it. Shorten it. Craft it until it’s perfectly clear. You’ll be amazed how many headaches you can avoid when you just slow down, and make the extra effort to be painfully clear.
Want to stop wasting money on advertising? Be clear about the strategy.
Think of it this way… Effective advertising is a combination of two things: Whatto say, and how to say it.
The “what to say” part means you need to articulate your strategy very clearly. The “how to say it” part is the job of the creative team. The copywriter and the art director and programmer can’t do their jobs if they’re not clear on the strategy.
Want to build a brand? Be clear about what it stands for.
Filmmaker Morgan Spurlock did a great documentary about product placement in the movie industry called “Greatest Movie Ever Sold.” There’s a scene where he’s pitching his movie idea to a team of top executives, and they’re concerned that his spoof is not really right for their brand.
“So what are the words you’d use to describe your brand.” Spurlock asks.
“Uhhhhhhhh. That’s a great question…”
No reply. Nothing but a bunch of blank stares and squirming in their seats. Finally, after several awkward minutes, one guy throws out a wild ass guess that sounded like complete corporate mumbo-jumbo.
They were in the spotlight, on national TV, and they had no business clarity whatsoever.
Take time to write and produce a brand book that spells out exactly what your brand is all about. And what it isn’t!
Boil it down to a microscript your people will actually remember, rather than the usual corporate mish-mash mission statement. Then make sure that it becomes an integral part of your on-boarding procedure. Because if your own people don’t know what your brand stands for, how will the customer know?
Want traction for your startup? Find a name that’s clear.
Start-ups are hard enough without having to constantly explain your name.
“How do you spell that?” “What’s the name of your business again?” “How do you pronounce that?” “Wait, what?”
Instead, go with a great name like StubHub. It has a nice ring to it. It’s memorable. And it says what it is. Digg is another good example. In that case, the double letters actually work conceptually with the nature of the business… Dearch. Deeper.
Then there are these internet inspired misses: Eefoof. Cuil. Xlear. Ideeli. That’s just confusion waiting to happen.
Want advertising that actually drives sales?Be clear and overt about the value proposition.
Not just a description of what you do or sell, but a compelling microscript of the value experience that your target audience can expect. It’s a sharply honed combination of rational and emotional benefits that are specific to the target audience, and not lost in the execution.
Creativity is the lifeblood of the advertising industry. Don’t get me wrong… I love it, especially in categories where there’s no other differentiation. But sometimes you have to put clarity in front of creativity. So start with the value proposition. Then go to strategy. Then a tight creative brief. And finally, lastly, ads.
Want funding for your startup? You need overall business clarity.
When you’re talking about your amazing new business idea, be very, specifically clear about what’s in it for the consumer and how the business model will work. It all needs to be boiled down into a one minute elevator pitch that is painfully clear. There can be no confusion. You also need to be very clear with potential partners, employees, investors and especially yourself. If the idea’s not clear in your mind, it’ll never be clear to the outside world.
Want a powerpoint presentation that resonates? Be clear and stingy with the slides.
Powerpoint is one of the biggest enemies in the war against confusion. The innate human desire to add more slides, more data, more bullet points just sucks the wind out of your ideas and puts the audience in a stupor. Next time you have a presentation to do, don’t do a presentation. Write a speech. Memorize it and make ’em look you in the eye, rather than at the screen. If nothing else, they’ll get the message that you’re willing to do something radically daring.
The marketing landscape isn’t really a landscape anymore. It’s more like a fast moving landslide, snapping trees and engulfing unsuspecting business owners up to their ears in muck.
Most clients I know can’t possibly wade through the complex maze of choices.
They are wearing so many different hats, they can’t begin to sort out all the “marketing opportunities,” much less make sound strategic decisions regarding each one.
Quite frankly, it’s silly to even try.
There’s affiliate marketing, agile marketing, advertising, analytics, ambush marketing, B to B, B to C, B to P, behavioral marketing, blackhat marketing, branding, blog marketing and buzz marketing. And that’s just the first two letters of the alphabet.
It’s nuts. This is one area where delegation and outsourcing are the only paths to sanity.
Even the biggest brands in the world, with massive marketing departments, can’t make sense of it all. Bob Liodice, President and CEO of the Association of National Advertisers summed it up at a recent conference in Orlando.
“Yes, there’s been substantial technological progress. But is that progress getting us anywhere? The answer is no,” Liodice said. “We should not accept this byzantine, non-transparent super complex, digital media supply chain. No one can understand it. ”
Unless you have a background in at least one major marketing discipline, or unless you have time to devote 30 hours a week learning this stuff, your business will be better off if you stay focused on what you know, and turn to a savvy marketing pro who can dodge the landslide altogether.
I’ve seen what happens when business owners try to forego that marketing help, and try to tackle too many tactics…
• Sloppy, ineffective websites go live, simply because the owner has more important things to do.
• Value propositions go undefined and miscommunicated, both to the sales staff and to end users. Ask 100 small business owners “what’s your value proposition” and at least half of them will be stumped.
• Trade ads get printed in consumer magazines because the “marketing person”/executive assistant doesn’t know the difference.
• E-commerce sales copy on umpteen online retail sites is unproofed, uninspiring and untrue, leading to lackluster E-commerce sales.
• High-dollar digital campaigns directed to teenage gamers pop up on Our Time – a dating site for people over 50. Re-targeting gone wrong!
• Marketing tactics and strategy get completely out of alignment.
• A company that provides private jet services spends hundreds of thousands of dollars on schlocky local TV ads. The phones ring, but no one buys. Big surprise. They’re shouting to the wrong audience entirely – one that can’t possibly afford the product.
• Social media posts go viral – but they’re so off brand and out of left field, no one has any idea where they even came from.
Yep, the good, ol’ American do-it-yourself mentality dooms many marketing efforts, and even ensures the failure of thousands of businesses every year. For every new tactic, and every variety of marketing, there are a hundred different ways to screw things up.
So what are you supposed to do? How can business owners find the right marketing tool for the job and quit wasting time on marketing opportunities that go nowhere?
First of all, you need to have a general grasp of the complex marketing landscape.
Reading this blog and other credible sources is a good start. You need to know just enough to manage the process. It’s no different than managing lawyers or accountants or programmers… you can’t be totally in the dark about what they’re doing
Second, find someone you trust implicitly to help you wade through all the marketing clutter.
There are thousands of capable consultants, agencies, firms and freelancers who would love to help you. They will pour heart and soul into your marketing efforts, if you just treat them fairly and pay them on time and accept their outside perspective as a positive.
It’s easy to say, “yeah, well you don’ t really understand my business.” They may not know it as well as you do, but what we do know is marketing, That’s what you’re hiring us for. We can learn the ins and outs of your operation as we go, just as you can learn the basics of marketing and branding.
Third, set clear goals, expectations and metrics.
Demand some accountability. The last thing you need is someone running around spending all your marketing dollars with no clear direction.
Don’t expect a specialist in one little marketing niche to understand the entire marketing landscape. It may take one person to set the strategy and another group to execute all the tactics. After all, there are a lot of them.
I have a client who has spent 10 years studying marketing, just so he could “talk intelligently” with people like me.
He has read hundreds of marketing books, attended conferences, and traveled the country to hear the big-name gurus speak. He’s learned a lot, and yet he freely admits he could never do what I do. Because learning it from a book and actually doing the work successfully, over and over again, are two different things entirely.
But now he knows enough to manage the process. And he has someone he trusts to help him choose his opportunities wisely, and maximize every one.