Tag Archives for " Starbucks "

The Inside-Out Approach To Building A Brand.

I’m always amazed by business owners and CEOs who spend considerable time and money on branding initiatives, only to neglect the most important component of their brand: Their people.

If you want to build a great brand, you better start on the inside and work your way out. Seriously. If you can’t convince your employees to be your greatest brand ambassadors, who can you convince?

If they aren’t drinking the Kool-aid, and building a brand with enthusiasm, who will?

It’s interesting, during a brand audit, to compare the company’s external market research data with prevailing internal attitudes. I’ve seen companies that accurately claim to have a 98 percent approval rating. “Customers love us,” they say. But when we talk to employees, suppliers, past employees, and friends and family, a completely different tune emerges.

thumbs-down-smiley-mdDespite the happy customers, we often find a vocal group that is ready, willing and quite happy to talk smack about the company’s policies, procedures and practices. Not only are those groups NOT great brand ambassadors, they’re brand bashers.

When that becomes a pattern your brand image, and ultimately your business, will take a hit.

That’s why it’s so important to hire wisely, pay people well and treat them fairly. That’s why you start on the inside. That’s why branding is not just a marketing department thing, it’s an every department thing. That’s why the H.R. department actually plays a critical role in building a brand.

Yes, H.R.!

Just as there are sponsorships, ad campaigns and even products that are “off brand,” employees can also be off brand. Especially when it comes to senior management teams. If your VP of Marketing is not on the same page as your CEO, you’re going to have some major challenges. If you have a parade of people leaving the company, your brand will take a hit.

thumbs-up-smiley-hiIn order to avoid those conflicts that create a revolving door of turnover, your H.R. department, or whoever’s recruiting and screening new recruits, needs to be immersed in your brand. They should know your corporate culture inside and out and they should understand your purpose, mission, vision and management style. That’s how they find new employees who will become brand ambassadors rather than brand bashers.

Think about that. Of all the places you’ve worked, how many of those companies do you still talk up, and how many do you talk down? Chances are, you’re still loyal to a few.

I know people who worked at Apple, Amazon and Nike 20 years ago who still follow those companies fervently. They run in the shoes, invest in the stock and remain brand loyal long after they’ve moved on to different jobs. Even when they’re off building a brand of their own, they’re still devoted to the old brand.

There are more than 2000 Starbucks employees who are attending Arizona State University free of charge, thanks to the Starbucks College Achievement plan. I bet those kids will be Starbucks fans for life.

In “Built To Last’ James Collins and Jerry Porrass show that great companies have “cult-like” cultures. (I think the word “cult” is not quite right. It’s more like a club.) The point is, Collins proved that great companies have a very clearly defined ideology that you either buy into, or not. “If you’re not willing to adopt the HP Way or the gung ho, fanatical customer service atmosphere of Nordstrom, then you’re not a good fit for those brands. If you’re not willing to be “Procterized” then you don’t belong at Procter & Gamble.”

You won ‘t see a Walmart executive or store manager leave for a position at Whole Foods. Not going to happen.

blog article from ad agencies bend oregonPatagonia, Nike, Whole Foods… companies with passionate, clearly defined cultures are not always easy to work for. In fact, they often demand more of their people than the competitor next door.

But the alternative is much worse… No culture to speak of. No clearly defined brand. No core ideology for people to rally around. Poor morale. High turnover. Weak leadership. Those are the hallmarks of a brand in decline.

Scott Bedbury uses a nice parenting analogy in his book A New Brand World. “As brands evolve over time, they absorb the environment and karma of an organization, not unlike the way children are influenced by the place they call home. Both brands and kids thrive in an inspiring, learning, caring environment where they are appreciated, respected, protected and understood… So organizations, like parents, must instill values and behaviors that are not only positive, but consistent. ”

If the leadership of a company changes frequently, consistency goes out the door with them.

When you work on your brand from the inside out, your team shows a united front, and front-line employees become what Seth Godin calls “sneezers.” Spreading the gospel of your brand in positive way. When you neglect your people, and focus only on customers, disgruntled employees spread something much worse.

It’s up to you.

 

 

If you want help building your brand, contact me… John Furgurson at BNBranding.

If you want more information on building a brand from the Brand Insight Blog, try this post.

8 Scott Bedbury brand insight blog

Living The Brand, Scott Bedbury Style.

In branding circles, Scott Bedbury is kind of famous… He worked at Nike during the “Just Do It” years. Helped Howard Shultz build the Starbucks brand. And now he consults with a few lucky businesses and does speaking engagements all over the world. Even Kazakstan. Nice!

Scott Bedbury brand insight blogBedbury’s a very genuine guy, which is good, because that’s part of his branding mantra; the importance of being genuine.

These days, you can’t get away with being disingenuous. Some blogger, somewhere, will call you on it faster than you can say, “Where the hell’s our PR firm?” As Bedbury said, “the days of the corporate comb-over are gone.”

The brand assessment work we do is designed to reveal the truth behind a brand, not a well-polished corporate version of it. But some companies don’t like looking in the mirror. They aren’t forthcoming with the comb-overs and other cosmetic improvements because the genuine attributes of their brand just aren’t pretty.

I’ve seen plenty of cases where a company’s internal perception of the brand doesn’t jive with the consumer’s reality. If that’s the case, your branding efforts will have to reach much deeper than just the marketing department. You’ll actually have to change the product, tweak the operation or hire a different team. Because “everything matters.”

bend oregon advertising agency BNBrandingIt’s nice to hear that Bedbury’s donating his talent for good causes. As he says, great brands use their superhuman powers for good and place people and principles before profits. “Give a damn, and give back,” to be exact.

Patagonia is a company that gives a damn. There’s nothing fake about Yvonne Chouinard’s dedication to environmental causes, and it shows in everything the company does. The Patagonia brand, the operation and the products are aligned perfectly around a single, unifying idea… Save the environment so we can all enjoy the outdoors.

Unfortunately, few companies are as focused or philanthropic as Patagonia. Several business plans came across my desk in the past week, and it reminds me why Bedbury’s branding message is so important. All too often, the startup is only about cashing out. Nothing else.

Jim Collins, author of Built To Last, has something to say about that: ” The entrepreneurial mind-set has degenerated from one of risk, contribution, and reward to one of wealth entitlement. I developed our business model on the idea of creating an enduring, great company — just as I was taught to do at Stanford — and the VCs looked at me as if I were crazy. They’re not interested in enduring, great companies, just an idea that you can do quickly and take public or get acquired within 12 to 18 months. “

Anyway, even if you don’t have a great company that donates a portion of your profits like Patagonia does, you should still have a cause that drives your operation. You need a purpose the employees can rally around… something more meaningful than just boosting the stock price.

Scott Bedbury’s boss at Nike, Phil Knight, was adamantly against his employees watching the stock price. When Bedbury got to Starbucks it was posted by the hour, up on a bulletin board for everyone to see. Not sure if Bedbury was able to change that practice or not, but it never sat well with him. He’d rather think long term.

Another thing about Bedbury is that he can still laugh at himself. (Or at least he could the last time I saw him speak in Bend, Oregon.) Again, he’s following his own advice. An amusing anecdote and an easy chuckle are perfectly “on brand” for Scott Bedbury.

oregon advertising agency BNBranding shares Scott Bedbury quoteHe’s not the type of guy you’d find as a Chief Marketing Officer at a Fortune 500 company, that’s for sure. He’s more storyteller than suit.

Storytelling is a big part of branding. Once you’ve figured out the real crux of your brand, you have to communicate it in a form that people can understand. And nothing is more effective than a good, old-fashioned story. Doesn’t matter if it’s delivered via the latest, greatest mobile technology, it’s still just a story. Tell it well. Tell it often. And keep it real.

One last piece of advice, inspired by Scott Bedbury… Don’t be afraid to reinvent your brand from time to time. Every summer he “shuts it down,” and hangs out with his family in Central Oregon. He writes, plays a little golf and recharges the batteries. So his own, personal brand will be fresh and ready for the next, big brand adventure.

For more insight on brand stories and similar case studies, try THIS post.

Bare breasts mean business at Starbucks.

Notice anything different at your local Starbucks lately? I sure have. The familiar green and white logo on the cups is missing. It’s a travesty to brand-conscious graphic designers everywhere.

At first glance I thought maybe it was just a corporate cost-cutting measure — the result of tremendous Wall Street pressure to improve performance. But once I looked a little closer, I noticed something even more revealing:

Starbuck has bared her breasts! The mermaid that’s been the Starbucks icon from day one, has gone back to her topless, hippy roots.

There are a lot of other changes going on at Starbucks in Seattle — you might even call it a corporate shake-up — but none are as symbolic as the undressing of the logo. I take it as a sure sign that CEO Howard Schultz is serious about stripping away some of the fat and refocusing on the core of the Starbucks brand .

That little nod to the humble heritage of his company says a lot. The green logo has just two words: “Starbucks Coffee.” The retro logo reads “Starbucks Fresh Roasted Coffee.” It’s a reminder to the world that Starbucks has always been obsessively focused on the quality of it’s product.

In his book, Pour Your Heart Into It, Schultz says, “The number one factor in creating a great, enduring brand is having an appealing product. There’s no substitute.”

I know a few coffee snobs who claim that Starbucks isn’t as good as the local guy’s Ethiopian Tega & Tula. And they may be right. But I also know that Starbucks beats the hell out of the mom & pop drive-up operations that have appeared on every corner.

At Starbucks, the product is consistent. The coffee is just as good as ever, but the company has made some operational decisions that have had a subtle effect on our perception of that quality. Shultz seems determined to correct that, and if his track record over the years is any indication, he’ll pull it off.

Ever since I read his book back in ‘99 I’ve used Schultz and his organization as a great example of focused leadership, exceptional execution and textbook branding. He has always been the brand champion in that organization. He was one who introduced the idea of gourmet coffee to a nation of Folgers drinkers, and he has always fought to maintain quality standards even during their hyper-rapid growth.

Shultz is adamant about controlling the brand experience as much as possible, down to the last detail. That’s why the company never sold franchises. At first, Shultz didn’t even want to sell coffee in paper cups at all, lest it detract from the experience and affect the flavor.

So these new “transformational initiatives” of his are no big surprise.

First thing is to recapture that appealing coffee aroma in every store. Believe it or not, that smell of fresh roasted coffee is every bit as important to the brand as the look of the stores or the music they play. It works on a subtle, subconscious level, but the bottom line is, you won’t hang out and enjoy your double half-caf mocha if the place doesn’t smell good. So Starbucks is going back to manual espresso machines and killing the sale of breakfast sandwiches.

The Starbucks business model is based on the idea of the third place… that we all need a relaxing getaway that’s not home and not work. To me, it’s more of a romantic, Vienna coffeehouse experience than a quick, Italian espresso shot. So the roll-out of free wi-fi service is long overdue. Paying for an internet connection at Starbucks was just idiotic to me.

The third and final cornerstone of the Starbucks brand is its own people.

“We built the Starbucks brand first with our people, not with consumers — the opposite approach from that of the cereal companies,” Shultz said. “Our competitive advantage over the big coffee brands turned out to be our people.”

Starbucks doesn’t just talk about treating people well, the company really does. In the retail food service industry, where getting good help is always a challenge, Starbucks leads the way with its pay scale, benefits packages, training programs and retention rates.

“We believed the best way to meet and exceed the expectations of customers was to hire and train great people. That’s the secret of the power of the Starbucks brand: the personal attachment our partners feel and the connection they make with our customers.”

The company also listens to its front-line employees. The idea for Frappuccino came from the store level. The new website, mystarbucksidea.com, started out as an internal feedback tool for employees. Now anyone can go online and post their own ideas for Starbucks, vote for the best, and see what’s being implemented.

Which brings us back to that idea of reintroducing the old logo, circa 1971.

The change coincides with the introduction of a new house blend, called Pike Street Roast, for people who just want a good, robust cup-o-joe. In that context, and with everything else that’s happening at Starbucks, the branding throwback makes perfect sense.

The mark was originally inspired by a woodcut image of a Norwegian mermaid, fully exposed. Over the years, as Starbucks grew and became “more corporate,” the logo slowly morphed. Eventually the designers gave her long hair, which covered her breasts and made her more palatable to a broad commercial audience.

Now Shultz wants to go back in time. Back to when the company wasn’t really worried about offending anyone on Wall Street. Maybe this little flash of skin is just what the company needs.

Starbucks logo updates

Updated again in 2011

If you want to recapture the magic of your brand, or build a new one from the ground up, give me a call. 541-815-0075