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8 crowd sourcing logo designs waste of money

Crowdsourcing logo design (Getting literal for little.)

brand credibility from branding expertsCrowdsourcing logo design is a sore subject in the graphic design community. I could easily write 10,000 words and show 1,000 examples of why crowdsourcing is a bad idea. But I’m just going to focus on two practical reasons that you probably haven’t considered… These two ought to be deal breakers for many people who are trying to save a few bucks on their brand identity:

1. Managing the crowdsourcing process is a time-consuming pain in the butt. If your time is valuable, it could actually cost you more than hiring a local designer.

2. The finished product usually falls flat. Branding firms and graphic designers spend a lot of their time “re-branding” companies that originally crowdsourced their logo design.

 

First, let’s address the managerial issues of crowdsourcing logo design.

I recently coordinated a crowdsourcing project for a client. (Against my most adamant advice.) The client believed that his money would be better spent “outsourcing” the design work and using me as the Creative Director/Project Manager.

crowd sourcing logo designs waste of money

Fair enough… I’ve played that part in my company for more than 25 years, so it should be easy, right?

Wrong.

Managing a herd of young, unproven designers from far-away lands is far harder than managing the designers who I know and trust. It was a valuable experiment, and a bit of an eye-opener for me.

My first task was to provide an insightful, tightly-written creative brief that would provide all the inspiration the designers would need. No problem, that’s right in my wheelhouse. Plus, I had already devised a brand platform for that particular client, so the brief was relatively easy. In this case, my creative brief even included specific graphic concepts that I wanted the designers to explore.

Too bad nobody read it.

The first 50 design submissions were obvious throw-aways — A complete waste of time from designers who didn’t take even five minutes to read the creative brief. It was ridiculous. Using the handy “comment” tool on the crowdsourcing platform, I strongly suggested that they start over. “Don’t submit anything until you’ve thoroughly studied the creative brief,” I told them.

The next batch wasn’t any better. The designers were obviously submitting old designs that had been sitting around from past crowdsourcing “contests.” They just changed the name of the company, and voila!

Back to the comment tool: “We will entertain original designs only… no recycled designs please. “

I also loaded up more background material for the designers who actually choose to read. But as more designs rolled in it was painfully clear that many were just derivatives of earlier submissions. That’s one of the worst things about crowdsourcing… the designers see all of the submissions and what the client has “liked.” This system inevitably leads to copy-cat design.

“The client said he likes that font, so I’m going to use that font.”

crowdsourcing logo design “The client liked that purple color, so I’m going to do some purple versions.”

“The client commented favorably about that mark, so I’m going to do something like that.”

At one point a cat fight erupted between two of the designers, with one accusing the other of stealing her designs. Never mind. They were both terrible. I saw more crummy designs in that month than I had in the last 10 years. Back and forth and back and forth we went until we finally selected the “winning” designer.

That’s when the real work started.

After looking at more than 250 designs we finally had one that was, at least, a mediocre solution. Again, I went back to the “comments” tool and began the fine-tuning process. Unfortunately, the winning designer had no experience producing a simple bundle of materials like letterhead, business cards and an email signature, so there was a painful back-and-forth process on the simplest little production details. Stuff than any junior designer should have known.

For accomplished creative teams, every new design assignment is a learning process. The work is driven by insight and spurred on by a thorough understanding of the product or service.

We thrive on the challenge of that and there’s a disciplined process that we follow. We do the research, study the market, live with the products and pour our heart and soul into helping clients succeed. Because that’s how we succeed. We have to learn about the business before we can design anything.

crowdsourcing logos Brand Insight BlogCrowdsourcing logo design eliminates that process. It skips the insight phase and jumps right to execution with no business thinking involved. No listening. No collaboration. It also leaves the client in the unenviable position of  Project Manager and Creative Director…  A tough dual role to play if you’ve never been in the design business.

Professional managers know the danger in this. They don’t choose to manage projects when they have no experience or expertise in the activity they’re managing. So if you have no experience managing freelance designers, don’t choose crowdsourcing. Hire a design firm to manage the process for you.

Now for a discussion about subjective quality…

The finished product of my one crowdsourcing experience was mediocre, at best. Even though I served up ideas on a silver platter, and provided tons of insight on the market and the business model, the designs were weak. Most were just too darn literal.

Advice on crowd sourcing logo designs on the Brand Insight BlogIf you’re in the roofing business you’ll get a drawing of the roof of a house. If you’re in the ice cream business, it’ll be a cartoon ice cream cone. If it’s the veterinary industry, it’s always a dog and a cat together in one logo. Nothing is left to the imagination. And there seems to be an assumption that all prospects are idiots.

Well guess what. If you dumb down your logo design, and pound people over the head with visual clichés and literal redundancies, you will not make the connection you’re hoping for. Your brand will not become iconic.

Imagine if Nike had gone the literal route…  Instead of the Nike swoosh, we’d have a an illustration of a shoe. And Nike might only be a two million dollar company.

If the I.O.C. had chosen the literal, quick-n-dirty design there would be no Olympic rings.

There would be no Golden Arches.

If Starbucks had chosen crowdsourcing there would be no mermaid.

There would be no crocodile for Lacoste.

See, logos are supposed to be symbolic. They are symbols of something, or the graphic interpretation of the idea behind your brand. Not literal descriptions of your service or product.

So stop trying so darn hard to get a literal logo. Let a good graphic designer apply a little creative license, and you’ll have a much better chance of becoming an iconic brand.

When it comes to crowdsourcing logo design, it’s a classic case of “you get what you pay for.”

For more on designing a great brand identity, try THIS post.

If you want to see what real, professional brand identity design looks like, check this out.

1

“Brand” Trumps Managerial Incompetence.

I need to stop being surprised by managerial incompetence.

managerial incompetence Brand Insight Blog by BNBrandingHonestly. 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, nitwits and nincumpoops seem to rule the world.

These are just a couple examples of managerial incompetence that I’ve encountered in the last year:

• The retail store owner who has no handle on her inventory levels, media expenses or labor costs.

• The non-profit executive who has a revolving door of talent, going only one direction. (Four different marketing directors in five years.)

• The managing partner of a professional services firm who constantly, habitually, over-bills his clients. (Subsequently, that firm spends way too much time trying to land new clients.)

• The Director of Communications who doesn’t communicate with anyone internally. She’s completely siloed.

• The CEO who can’t pull the trigger on anything. The only decision he can make is to hire a consultant to help him make a decision.

 

Managerial failures like those are rampant. There was a study done by a Fortune 500 consulting firm that showed “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, 50% of the companies you compete with are chock full of managerial incompetence. So you might have a leg up.

And here’s more good news:  It’s well documented that a strong brand helps companies overcome all sorts of managerial incompetence and unforeseen market forces.

For instance, strong brand affinity can help companies maintain market share during a price war. People are willing to pay a little more for a brand they know and love.

According to the International Journal of Business Research, a brand acts as a buffer when the company fails on the customer service front. People are more forgiving when it’s one of their brands that fail.

And beloved brands can weather PR storms that would make most companies melt. Look what happened to Toyota…

In 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 managerial incompetenceToyota 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, but brands endure.

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 know 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. When you find one, treat her well.

No one has the childhood dream 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

3 Small brands, big attitudes. How to create an XXL brand personality

BNBranding logoWhy do some businesses with relatively mundane products and services take off, while others stagnate? Often it comes down to brand personality. Or lack thereof.

Ben & Jerry's brand personality on the Brand Insight BlogWhen Ben Cohen & Jerry Greenfield started selling homemade ice cream out of a renovated gas station in Burlington, Vermont, it was personality and a little extra attitude that helped get the business off the ground.

Jerry said, “If it’s not fun, why do it?” Ben said “Every company has a responsibility to give back to the community.”  Those two simple ideas became the driving philosophy of the Ben & Jerry’s brand.

Over the years they’ve had a lot of fun with their crazy flavors: First it was Cherry Garcia, named for Jerry Garcia of the Grateful Dead.Currently, it’s Karmel Sutra. Imagine Whirled Peace. What A Cluster.  Magic Brownie.  Jimmy Fallon’s Late Night Snack. And Alec Baldwin’s Schweddy Balls, named after a Saturday Night Live character.

There’s authentic brand personality in every lick.

 

 

Needless to say, some people (including a few franchisees) were offended by the idea of Schweddy Balls on a waffle cone. But the company’s not shy. In fact, you could say that bravery is part of the brand personality.

Bend Oregon branding firm blog post on Ben & Jerry's

Controversial flavor of the month at Ben & Jerry’s

Ben & Jerry have never been afraid of a little controversy. In fact, they embrace it as a core brand value.

They decided from the get-go that the company needed to stand for something beyond just making money. So they built their passion for social and environmental issues into the business model. That, by itself, differentiates their brand from the competition — and from 90% of the corporations out there.

You don’t see Baskin Robbins doing Free Cone Day for local charities. Or buying environmentally friendly freezers. Or supporting Fair Trade. Or railing against military spending. Or even occupying wall street. You won’t find Haagen Daz supporting a local school fundraiser.

In their book, “Double Dip,” Ben said “Modern marketing is a process whereby faceless, nameless, valueless corporations hire marketers to determine what the consumer would like their brand to be, and then fabricate an image that corresponds. But they still only get a sliver of the market, because their made-up story isn’t any more appealing than the next. With values-led marketing you just go out there and say who you are. You don’t have to fool people to sell them your product.”

That’s what you call an authentic brand personality.

Most business owners seem to think they should keep their personal views and beliefs out of business. But for Ben & Jerry, their personalities and personal moral code created a corporate culture that’s become a model for value-driven businesses everywhere.

Like on the opposite side of the country, at McMenamin’s in Portland, Oregon. If you’ve spent any time at all in Oregon you’ll know the name McMenamin’s… Brewpubs. Historic, landmark hotels. Great microbrews. Movie Theaters. Restaurants. Music venues. Hidden, hole-in-the-wall bars. And did I mention the beer?

brand personality of McMenamins

McMenamin’s is a unique, regional brand that was started back in 1974 by two Portland brothers, Mike and Brian McMenamin. Like Ben & Jerry, they aren’t corporate marketing types or Silicone Valley entrepreneurs. They’re just normal, laid-back Oregon dudes with a shared vision and a taste for good beer.

brand personality from bend oregon advertising agency blog postFirst they had a small café in a run-down industrial area of Portland. Then, in 1985, they created the first post-prohibition brew pub in Oregon and ignited what is now a 22 billion dollar industry. Today they have more than 60 locations throughout the Pacific Northwest, many of which are undeniable destinations, in and of themselves.

One thing the McMenamin brothers have in common with Ben and Jerry is a quirky, earthy, anti-corporate attitude. In fact, there’s a conscious anti-branding ideology at McMenamin’s that, ironically, produces a distinctive brand experience.

Even though each property has its own unique identity, they all bear a striking family resemblance. Check into any of their hotels or just order a pint at any of their neighborhood taverns and you’ll know you’re at a McMenamin’s.

bend oregon advertising agency blog post on brand personalityThe vibe is distinct.  Appealing. Even irresistible.

Mike and Brian share a love of architecture, art, music, and good beer.  And they combine those elements in spectacular fashion at every location.

The brothers hate to see any cool old building go to waste.Their idea of fun is taking a dilapidated county poor farm in the unlikely town of Troutdale and transforming it into a 4 and a half star destination.

It’s not development, it’s historic reclamation.

At McMenamins, it’s not about the personality of the brothers, it’s about the personality of each property. The staff historian researches the story behind every property they purchase. Like the Kennedy School. The old Masonic Home in Forest Grove. The old Elks Temple in Tacoma, Washington. St. Francis School in Bend, Oregon. The history of the brand personality post from BNBranding, an oregon advertising agencybuilding and the neighborhood becomes part of the brand personality of every location.

The distinctive brand identity of every new property fits with the quirky look and feel of the overall brand. Not only that, when you walk into any one of their locations,  you’ll immediately notice the consistent identity and atmosphere in every little detail.

The execution is amazing. Oregon is chock-full of brew pubs these days, but none can match the appealing atmosphere of a McMenamins.

You won’t find the McMenamin brothers doing publicity stunts or speaking engagements. They just stay under the radar and focus on doing what they do well… turning abandoned properties into thriving businesses. With good beer, exceptional experiences and a very loyal following.

brand personality post on the brand insight blogEveryday they get suggestions from fans across the country about properties that would be perfect for a new McMenamin’s.  And when one of their oldest taverns burned down, customers held a vigil in the parking lot. Brian McMenamin called the response “spine-tingling.”

brand personality

The artwork gives it away… obviously, a McMenamin’s project.

That’s brand loyalty!

And it doesn’t come from big, trumped up marketing efforts. It comes from doing things passionately. Consistently. And honestly.

As Ben & Jerry have said, “Only the quality of the product and the resonance a customer feels with the company can produce repeat business and brand loyalty.”

Big personalities resonate. But as the McMenamin brothers and Ben & Jerry prove, you don’t have to be Richard Branson to build a successful brand. You just have to be passionate about something. Because humans are naturally drawn to passionate people.

If you’re ever in Bend, Oregon, give me a call and I’ll treat you to a beer at the Broom Closet bar at  McMenamin’s Old St. Francis school. We’ll talk branding, business and personality.

For more on how to build a brand with personality, check out THIS post.

2 Brands and corporate mergers — F15 Fighter vs. the 787 Dreamliner

BNBranding logoIn 1997 Boeing and McDonnell Douglas agreed on a merger. Like most corporate mergers, that marriage looked great on paper:  Boeing’s strength — commercial jetliners — was McDonald Douglas’ weakness. And vice-versa. A match made in heaven — or at least in the clouds.

Boeing’s shortcomings on the military side would be bolstered dramatically by partnering with McDonald Douglas, maker of the F15 Fighter, the Apache helicopter, the Tomahawk missile, and many other successful weapons systems.

Two global brands, both looking to shore-up the weakest parts of their business. Two diametrically opposed corporate cultures. Two distinct brands and one ill-fated corporate merger.

 

 

The Boeing deal demonstrates how brands and corporate mergers usually don’t fly.

I seriously doubt that very many big-league M & A attorneys are sitting around their big, mahogany conference tables contemplating the nuances of the two brands they’re trying to bring together.

The McDonald Douglas brand revolved around blowing things up. Inflicting damage. Killing the enemy. Commercial production of the DC10 and MD80 was not the core of that brand.

Their preferred customers were military men around the world, all cut from the same, heavily starched cloth. And when you sell to the same, homogeneous group of bureaucrats for a long time, you begin to look, and act, a lot like your customers.

At Boeing the culture revolved around two words: Safety and efficiency. The imperative in Boing’s Seattle headquarters was just the opposite of McDonald Douglass… kill no one.

Boeing just wants to get people safely and comfortably to their  destination. And, of course, help the airlines make a lot of money. Boeing’s customers were airline industry execs,  not DOD officials or foreign generals. B to B sales are a lot different than government contracts.

The two cultures were sure to clash.

And as Peter Drucker famously said, “culture eats strategy for breakfast.”

brands and corporate mergers Boeing and McDonald Douglass BN Brandingbrands and corporate mergers Brand insight Blog

For some first-hand insight on business strategy, brands and corporate mergers, I spoke with a recently retired Boeing executive who was directly involved with that merger and the integration of the two companies.

“There’s always going to be one executive who ends up taking the pivotal lead in the new, merged company. And that person came from McDonald. So he was naturally more inclined toward the military side of things. It’s like having two kids you don’t give equal attention to… Eventually they start fighting. Then if you take the allowance from one of them, you got some real problems. Eventually, both kids will suffer,” the exec told me.

There were the usual leadership problems, plus profound problems at lower levels where manufacturing  integration was supposed to occur.

“Integration starts at the bottom. It’s like zipping up a jacket… You can made progress to a point, but the higher you go, the harder it is to bring the two sides together,” the Boeing exec said. “Literally, we couldn’t find any common ground.”

So if you have two competing corporate cultures merged in one company, what does that mean for the brands?

In this case, the McDonell Douglas brand faded away. It’s now called Boeing Integrated Defense Systems.

The Boeing brand certainly is stronger now in the eyes of military customers, but they all know it’s really McDonnell people and McDonnell products with the Boeing logo.

On the commercial side, the Boeing brand has gained little from the merger. In fact, my source contends that the current delay on the 787 Dreamliner can be traced, at least in part, to the merger.

“In military aviation they can push the technology and take more risks. In the commercial airline business, you don’t use unproven technology because the risks are just too great.”

“But with the new leadership, there was a lot of pressure to try new things at Boeing. The 787 Dreamliner is a fantastic platform, but they chose an unproven design for the wing-to-body joints, and now they have to go back and fix it. It’s enormously expensive.”

brands and corporate mergers alignment by Brand Insight BlogAccording to the Seattle Times, Boeing CFO James Bell admitted the delays and problems put pressure on the profitability of this (787) program.

“We’ve always been concerned with the cumulative impact of the schedule delays and the pressure it puts on cost,” Bell said. “We also have been concerned with the delays to our customers and how that converts to penalties or the settlements we have to work through with them.”

Even though Boeing reported strong profits initially from both commercial and military orders, the brand is suffering. The rash of bad publicity is tremendously painful for a brand that has, historically, stayed successfully under the radar.

Because in the commercial airline business, front page news is almost always bad news.

The business world is littered with similarly conflicted cases where brands and corporate mergers were at odds. For instance, the Chrysler/Dalmer Benz merger was doomed from the start. (At least they didn’t try to put the Mercedes nameplate on all the Chrysler minivans.) Now it’s Fiat/Chrysler, and the Chrysler brand is in big trouble.

The McDonald Douglas-Boeing corporate merger was like Mercedes merging with the maker of the Abrams tank.

Not exactly compatible corporate missions.

But then, mergers and acquisitions rarely account for cultural synergy or shared brand values. Often it’s more about eliminating competition, covering up corporate inefficiencies or pleasing wall street.

With branding and corporate mergers, it’s almost always a numbers game, not a branding play.

branding and corporate mergers - BNBrandingIf brands were a consideration, a lot more merged companies would maintain two different brands — rather than trying to integrate under one corporate banner.

McDonnell Douglas would still be the brand for military applications and Boeing would be the brand for all commercial operations.

Amazon’s acquisition of Zappos has the potential to be a more successful example. The two companies have similar, long-term visions. They both emphasize customer service and loyalty. And they’re both on-line retailers.

Not only that, Bezos is smart enough recognize the value of the Zappos brand, and has not killed it.

If you’re seriously considering a merger or an acquisition, include a thorough brand evaluation in your due diligence. Study the corporate cultures.  Talk to the CMOs about a long-term brand strategy for the new, combined brand. Consider the intangible value of each existing brand.

Brands and corporate mergers  almost always clash. And if integration of the two brands under one is the plan, it might be a lot harder than you think.

Just ask the engineers at Boeing.

Learn more about brand value and what all the truly great brands have in common. 

another iconic brand by BN Branding

 

2 Branding firm BNBranding

Restaurant Branding — Recipes for failure and success

BNBranding logoAt what point does a trendy new restaurant become an iconic brand? And when do all the branding efforts under the sun produce nothing but another shuttered dining establishment?

The restaurant business is littered with cases of meteoric success and dramatic failure. It’s an inherently volatile business. This is the story of several competing restaurants in a small but rapidly-growing market. It’s a story of restaurant branding success — and failure  — that any business owner can learn from.

Prior to 2000, the culinary scene in Bend wasn’t much to write home about. Some would say, non existent. So when Merenda opened in 2002 it generated tons of buzz.

Restaurant Branding BNBrandingAs the Bend Bulletin reported, “Chef Jody Denton pioneered a renaissance in fine dining in Central Oregon.”

But the Merenda brand wasn’t about fine dining. It was about partying. It was a loud place in downtown Bend where large groups would gather and drink generously from an outstanding wine list and a good assortment of adult beverages. Not great for a quiet dinner date.

The vibe was more urban — the energy level more electric — than anything previously found in Bend. Many nights you couldn’t hear yourself think, and the bar scene at Merenda became a notorious pick-up joint for older divorcees.

 

 

 

Meanwhile, across town in a nondescript location next to a car dealership, a restaurant called Zydeco quietly began to build a loyal following. The contrast was dramatic.

The first, most fundamental element of any restaurant branding effort is the name.

So let’s compare… What a great name:”Zydeco.”

It’s fantastically memorable with positive associations of fun in New Orleans. It’s authentic. Zydeco serves delicious cajun cuisine, which, years later, is still unique for this town. It’s also an aspirational name that the restaurant has grown into over the last 15 years.

waste in advertising - BNBranding's Brand Insight BlogOn the other hand, “Merenda” just didn’t work as well.

It sounds nice and has an elegant, upscale ring to it, but it’s so much softer than the product and the experience. The name didn’t fit the vibe and the location.

Plus, if you want to get nit-picky, “Merenda” translates to “snack” in Italian. But it was not an Italian restaurant. It wasn’t a snacky kinda place.

Trendiness seldom translates into a lasting brand.  

Many of Merenda’s customers were only there because it was THE place to see and be seen. It was a superficial relationship, not a genuine bond. Success by association. When new restaurants like Zydeco opened, the crowds thinned out at Merenda.

At Zydeco, it was more than that… It was the service, the friendly, family-owned vibe, and the overall, everyday quality that set it apart. It was upscale, but accessible. Popular but not trendy. It wasn’t trying to be cool, but it was. And still is.

Trendiness is a common problem in restaurant branding, fashion and high tech. The next big thing or hot spot is always right around the corner. So successful brand managers have to find ways to stay relevant with their past customers, or become relevant to a whole new group.

BNBranding use long copy to be authenticRelevance, differentiation and credibility. Those are the three key ingredients of restaurant branding success.

After five years Chef Denton got distracted. Just when Merenda needed a little extra attention he opened another restaurant less than a block away. And his place called Deep never got above water.

Brands need constant attention.

This seems like a no-brainer, but many people dream of having a business that runs on autopilot and generates an endless flow of effortless revenue. That doesn’t work in any industry, much less the restaurant business.

You have to mind the store.

In 2005 Cornell University published a seminal study on why restaurants fail. One of the surprising contributors was simply a lack of attention, time and effort by the owners.

“Failure seemed to stem from an inability or unwillingness to give the business sufficient attention… The immense time commitment was mentioned by all of the survey respondents who had failed.”

restaurant brandingAt Deep, Denton was determined to create something completely different. As he told The Bend Bulletin: “That’s been kind of my business model: finding what Bend doesn’t have and filling that void. I’ve always enjoyed the environment of a sushi bar. It’s always been something appealing, both from the restaurant’s and the chef’s standpoint.”

What he failed to consider was how much attention his other brand required. He was spread too thin and his upscale sushi place was ahead of its time.

Differentiation doesn’t guarantee success in restaurant branding.

Being different from the competition is certainly important, but it’s not everything. Tiny morsels of Kobe beef served on a hot rock for eight dollars a bite… That’s different! “Angry Lobster,” Monkfish paté, grilled yuzu and marinated, chopped maguro tataki were all impressively different, but not appealing enough to inspire repeat business by a large group of people in a relatively small market.

Bottom line: Deep was a high-end sushi place in a meat and potato town.

All successful brands have a clear, well-defined concept that goes beyond the product.

As I have said in previous posts, if you want to build an iconic brand, first own an idea. The Cornell study proved that clarity of concept is essential to restaurant success.

“Perhaps the key finding was the focus on a clear concept that drives all activities… Successful restaurant owners all had a well-defined concept which encompassed an operating philosophy and business operation issues. Failed owners, when asked about their concept, discussed only their food product.”

In other words, successful restaurants have core brand concepts that go beyond just the food.

Denton certainly had vision beyond food for both his restaurants. But the concepts behind Merenda and Deep were based more on Denton’s past experience and personal preference than on the realities of the local market.

There’s an old saying… “If you want to live with the classes, sell to the masses.”

In Denton’s case, his restaurants served the classes. His high-end brands only resonated with a small segment of the population, and he didn’t reinvent Merenda when he needed to.

In the end, Denton’s concept for Merenda was not clear enough to sustain the business over the long haul. (Being first in the market isn’t a sustainable brand strategy for a single restaurant.) And the concept for Deep never had a chance. So both restaurants were shuttered and his investors came away empty handed.

Eventually, Merenda reopened under a new name with a new owner. “800 Wall” never created the buzz of the original, and it’s now cruising along, probably doing fine in the summer, but not exactly inspiring loyalty or write-ups in Gourmet Magazine.

Zydeco, on the other hand, has grown and evolved. When they moved into a larger, fancier location downtown they bought a loyal following with them. It’s now more popular than ever, despite the fact that new restaurants keep popping up around town.

For more on brand strategy, try this post.

If you want help with your restaurant branding, call me.

BNBranding's Brand Insight Blog

6 classic positioning strategy

Positioning — It’s not what you SAY. It’s what they THINK.

BNBranding logoIn the 1970’s Al Ries and Jack Trout popularized the concept of positioning strategy. Since then, they’ve written dozens of spin-off books, including Focus, The Immutable Laws of Marketing, Bottom Up Marketing, and even Re-Positioning.

positioning strategyStill, you could have a roomful of MBA’s and no two would agree on what positioning really means. Many people can’t even decide if the word is an active verb or a proper noun.

Most people think of positioning as a simple step ladder. The cheapest, lowest-end products are “positioned” at the bottom of the ladder, and the best, most expensive products are on the top shelf, if you will.

But positioning has little to do with real price or quality. Instead, it’s all about perception.

The whole concept of positioning is based on the simple fact that we form opinions about products and companies based on our own perception. These opinions are influenced by all sorts of things… word of mouth, personal experience, individual prejudices, blogs, the marketing efforts of the brand in question and a hundred other factors.

 

 

 

In our own minds we make some pretty broad — and often rash — assumptions about things. Call it consumer bigotry if you want to. The fact is, we pigeon hole companies and products the same way we pigeon hole political candidates.

As marketers, our goal is to tap into these existing perceptions and use them to our advantage.

Here’s a classic example. Back in 1968, before the term positioning was ever invented, the makers of 7-Up scored a huge coup in the soft drink market.

Taste tests and other forms of consumer research revealed that people saw 7-Up as a refreshing alternative to colas. Respondents said it flat out… “it’s a nice change from all the cola I’ve been drinking.”

So the 7-Up executives decided to market the drink as the alternative to cola. It was a no-brainer, really. They simply took the existing perception in the marketplace and turned it into their strategy.

Like all good positioning strategies, 7Up’s was simple and almost painfully obvious. Once the executives at 7-Up knew what consumers were thinking, there was no other way to go.

classic positioning strategyThe creative execution of the strategy, however, was not so obvious.

J. Walter Thompson’s simple two-word slogan “The UnCola” said it all. Brilliant! The campaign gave the product a personality, cemented the idea in our collective consciousness, and assured 7Up a place in advertising history.

From a positioning standpoint this strategy worked remarkably well for several reasons. First, it didn’t attempt to change anyone’s perception. It simply leveraged the existing public opinion.

Secondly, it effectively repositioned the competition. Without slamming them, 7-Up lumped Coke, Pepsi and RC all together in a single boring category of colas.

classic positioning strategy by BN BrandingFinally, The Uncola tapped into the collective consciousness of the times. The new branding made 7Up relevant to the young people who account for a large portion of soft drink sales.

The campaign tapped into the prevalent anti-establishment mind set of the late 60’s. It actively encouraged defiance against the cola establishment and portrayed 7-Up as a symbol of dissent. The entire campaign summarized the popular values of the public and catapulted 7-Up into the position as the third leading soft drink in America.

While it is possible to build a positioning strategy around images alone, it’s usually a few simple words like “The Uncola” that solidify things in the consumer’s mind. Because you don’t “position” a product, you communicate its position.

“Just Do It” communicates Nike’s position as a brand of everyday athletes. “Pizza Pizza” is a fun way to communicate Little Ceasar’s low-price strategy. “Avis, we try harder” communicated the benefit of being number two in the rental car business.

On the other hand, many automobile companies have struggled with their positioning strategy. Oldsmobile, the now defunct GM brand, is a good example.

automotive marketing positioning strategyIn its last 14 years, Oldsmobile floated no fewer than ten different slogans. Here’s a few of the real gems:

“Olds Quality. Feel it.”

“Demand Better.”

“Look what happens when you demand better.”

“Defy Convention.”

“It knows the road.”

Ironically, the slogan that’s most memorable is the only one that even hints at the reality of Oldsmobile’s perception with American car buyers. “This is not your father’s Olds” used the old, fuddy-duddy perception of Oldsmobile and spun it in a positive way. Maybe if they’d have stuck with it for more than a year, the brand would still be alive today.

You wonder what kind of research Cadillac executives did that led them to believe they could compete with Honda and Toyota in the small car market. The Cimmeron failed miserably back in the 80’s. Then they’re tried again in the 90’s with Caterra, “The Caddi that zigs.”  Nobody believed that!

Now they’re trying to compete against BMW, Audi and Mercedez. GM finally got the product right with the CTS, but it’s still a classic case of force-feeding a product into a position in the market. Cadillac as a sports car just does not compute with the American public. It goes against everything Cadillac has ever stood for. The world’s biggest, most luxurious SUV is one thing, but we’ll never buy the concept of a small, sporty Cadillac.

On the same vein, Porsche is off track trying to compete in the SUV market. “The Porsche of SUV’s”  has a nice ring to it, but it will never really resonate with the public that sees Porsche as a rich-man’s sports car. What’s next, Chateaubriand at McDonald’s?

There’s an important distinction to be made here between niche marketing and positioning.

Cadillac can decide to focus on the luxury sports car niche and can build a car specifically for that purpose. But that does not mean the product will ever be perceived that way in the minds of the consumer. The problem is, Audi and BMW already occupy that space in the consumer’s mind.

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Here’s another trap that many companies fall into: They mistake their mission statement for a positioning strategy.

Fortune-500 companies miss the boat all the time on this. There’s a giant health care provider that recently formed an internal committee to study the “position” of the company and draft a “positioning strategy.” What they came up with was a mission statement at best.

But your mission — your statement of purpose — may have nothing to do with your position in the market place. And vice versa.

A mission statement is concocted by a committee and exists in corporate brochures, annual reports, and press releases. A positioning statement is formed in the consumer’s mind. A mission statement is the rose-colored view of your company. A positioning statement is the gritty, 16mm view.

No doubt, the semantics of positioning and positioning strategy can get confusing. But if you want to hedge your bets, think of it this way:

Positioning is not something you do, it’s something that happens. You can choose a narrow market niche, devise a new pricing strategy and launch a giant ad campaign that, together, may affect people’s perception of you. But you can’t technically “position” anything.

Want to transform your business into an iconic brand like 7-Up? Call us. 541-815-0075. Want more classic positioning advice? Read this post.

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