Category Archives for "MARKETING STRATEGY"

3 1 Tough Mother, 2 marketing objectives: Image advertising AND results

BNBranding logoIt’s an old debate… can image advertising actually move the needle on bottom-line business objectives?  Ad agency execs say yes, of course. But marketing directors, C-level execs and direct response guys are often skeptical.

My humble opinion… absolutely.

When it’s done well, “image” advertising certainly can achieve both objectives… move product AND cement the brand identity in popular culture.

There are many great examples of image advertising that has done exactly that…  The Got Milk campaign.  Absolute Vodka. Ipod intro advertising, to name a few.

Here’s a brand advertising case study from my hometown, Portland, Oregon: Meet Gert Boyle, the iconic matriarch of Columbia Sportswear.

Gert inherited the family business in 1970 after her husband’s untimely heart attack. At the time, Columbia was generating $650,000 a year in sales, but was teetering on the brink of insolvency.

Although the company made a popular line of fishing and hunting apparel, profitability had been a problem for years.

To make matters worse, Neal Boyle had offered three family-owned homes and his life insurance policy as collateral for an SBA loan. The pressure was on.

After the first year as CEO, Gert seriously considered selling. But when the deal fell apart she dug her heels in, made some tough decisions, and with help from her son Tim, turned the business around.

By 1978 they reached $1 million in sales. By 1983, they were up to $12 million. (In 2018 the company had 2.8 billion in sales. )

 

The first image advertising for Columbia was a big miss.

With the tagline “We don’t just design it, we engineer it.” Columbia touted the technical aspects of their product.  Ooops. It was a message more suited for the biggest competitors, like Patagonia or North Face, than Columbia.

Columbia’s jackets weren’t the most technical on the market, nor the most fashionable. It wasn’t a brand you’d see on an expedition up Everest or in a popular skiing film, so the engineering angle missed the mark. It was image advertising that didn’t capture the heart of the brand.

 

 

 

 

Columbia products represented functional practicality, not high-end technical features.

BNBranding use long copy to be authenticTheir jackets sold for half the price of their competitors, and were perfectly suitable for 95% of the population who are outdoor  enthusiasts, but not extremists. The brand was more about braving the Oregon rain than assaulting the seven summits.

So in the fall of 1984, Bill Borders, Wes Perrin and the team at Borders, Perrin & Norrander came up with something completely different.

“All the competitors were doing campaigns with pretty outdoor photos and suitably attractive models,” said Wes Perrin. “Bill wanted to differentiate the brand, and establish more personality.”

At that time, there was a famous campaign running with Frank Purdue, for Purdue Chicken. “We thought we could could do something like that, because we had Gert Boyle,” Perrin said. “She declined at first, but she ended up being great to work with over the next 20 years or so.”

brand advertising columbia sportswearThey portrayed Gert as stubborn, finicky and overprotective. They showed the product and touted benefits, but always in context with a small, family-owned business and Mother Boyle’s strict quality control standards. Nothing gets by her.

As it turned out, Gert embodied everything the Columbia brand is about. She was the most obnoxious, bullheaded, effective pitchman ever, and people loved her.

In her book, Gert said  “The impact of the ads was almost instantaneous. Sales quickly increased, and I was surprised when strangers came up to me on the streets and asked if I was the “Tough Mother.”

“The tall, thin, blonde models in our competitor’s ads may be easier on the eyes, but they don’t care about you like good old Mother Boyle.”

“The image created in the ads took hold. Instead of seeing us as just another outerwear company, our customers thought of us as the company where the cranky, crotchety old broad made sure they were getting a good product at a fair price.”

Once Gert and Tim realized they had a big hit they turned up the heat, outspending their competitors by a wide margin.

They started running TV spots where Gert used her hapless son as a product-testing guinea pig. She sent him through a car wash, dumped him unconscious on the summit of a mountain. Froze him in the ice and drove over him with a Zamboni. All with the tagline: Tested Tough.

Fun stuff. And spot-on from a branding standpoint.

How to differentiate your company - BNBranding“Our ads set us apart from the corporate pack. People related to us because they believe there is a person at Columbia who really cares. And the best thing about our ads is that they are true. I really do care.” – Gert Boyle.

Authenticity. Differentiation. Credibility. And increased sales. What more could you want from image advertising?

When the campaign launched in 1984, sales were $18 million. By 1990 Columbia hit the $100 million dollar mark. Today they’re the number one outerwear company in the world, doing $2.5 billion a year.

Unfortunately, Gert was absent from the brand advertising for ten years. While the company continued its growth, the advertising lost the edge that Borders had established. Columbia’s website and on-line marketing efforts didn’t have the brand personality of the old Gert Boyle ads, and began to look more like the predictable, stock imagery of all the other brands.

So in 2015, Columbia’s advertising agency brought Gert back for the “Tested Tough” campaign, proving that her appeal stood the test of time.

For more on brand personality and image advertising, try this post. 

BNBranding's Brand Insight Blog

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5 Things All Iconic Brands Have In Common.

BNBranding logoSimon Edwards, former Brand Manager at 3M, started a lively online discussion around this question: “What are the common attributes of iconic brands?

He opened it up on Brand 3.0 — a Linkedin Group that includes 4,363 branding consultants, practitioners, creative directors, gurus and wannabes. It was an intelligent, worthwhile discussion that hit all the hot buttons of the branding world.

But we were preaching to the choir.

So in an effort to reach a few business people who aren’t completely inside the bottle,  I’d like to cover the high points of the discussion and add a few examples…

•  “Iconic brands plays a valued role in a consumer’s life. They deliver a feeling that the consumer just can’t get from any other brand. That feeling may be security, safety, familiarity, excitement, satisfaction, indulgence or many others.” – Andy Wright

Here’s an example: At one time, I was a loyal Audi owner. Over a Thanksgiving weekend I had to drive the Q7 two and half hours on a narrow, icy, highway that’s sketchy even on a clear, summer night. I felt all those things… security, safety, familiarity, excitement, satisfaction, indulgence.

The trip wasn’t exactly fun, but it reinforced all my beliefs about the brand. I couldn’t have felt safer in any other vehicle, short of a semi truck.

“The 5 criteria of iconic brands are:  relevancy, competitiveness, authenticity, clarity of promise, consistency of communication. The hard work is the proactive management of the brand (including product development) to ensure the five criteria are delivered.” – Ed Burghard

Authenticity. Clarity of promise. Consistency.

 

I like Ed’s point here about proactive, ongoing brand management. Many people seem to think of branding as a one-time event. — do it and it’s done. But that’s not it at all.

You won’t stay competitive long enough to become iconic if you’re not constantly minding your brand.

Always Be Branding.

It’s a never-ending effort that should be intertwined into your day-to-day business.

“One element that has not been discussed is success. No brand can reach iconic status without being successful in achieving it’s purpose. Part is creating these wonderful brand connections – authentically, emotionally, as an experience. Part is communicating with clarity and consistency. Part is delivering on the promise. But a vital component is to have delivered results and exceeded expectations… yes?’    – Ed Holme

what great brands have in common PatagoniaPatagonia is an iconic brand with a very clear sense of purpose and a compelling story to tell.

It is clear and consistent. When that story is retold over time it establishes that intangible, emotional  connection that inspires people and fuels success.

What is the purpose of your business, beyond making a profit? Are you clear about that? Are you telling that part of your story in a compelling way?

• “I would like to add ‘Leadership’ to the list of attributes already mentioned. It’s not about market share, though; iconic brands play by their own rules. These brands tend to break the preconceived notion of function, service, style or culture, catching the competition off guard and finding unprecedented loyalty”… – Stephen Abbott

This was a contribution that really stood out. I believe leadership is a highly overlooked component of branding. If you don’t take a genuine leadership position in some aspect of  your business, your brand will eventually flounder. (Can you say GM?)

Iconic brands are not, necessarily, always the market leader.

BNBranding use long copy to be authenticLook at Apple. The iconic leader in the computing world only has 9.6% market share in computers. What’s more,  an iconic brand does not guarantee business success. Farrells Ice Cream parlors were iconic in this part of the country, and they went belly up.

Was Saturn iconic?  Certainly for a few years in automotive circles. What about Oldsmobile and Plymouth? Many icons of industry have fallen.

To build on the ideas related to story telling…  Iconic brands often align with an archetypal character and story which is instantly recognizable, psychologically stimulating and meaningful. Coke embodies the Innocent archetype as expressed through their advertising from polar bears to Santa Claus or the classic ‘I’d like to teach the world to sing’ campaign.” – Brenton Schmidt

Executives at Coke shattered that innocence when they changed the beloved formula to “New Coke.”  Probably the single biggest branding screw-up of the last 50 years. One woman, who hadn’t had a Coke in 25 years, called to complain that they were “messing with her childhood.”  Now that’s brand loyalty!

“Some underlying attributes (of iconic brands) tend to be focus, clarity and authenticity. However, all iconic brands tend to connect customers with an overreaching philosophy that fosters emotional connection between the customer and the brand.

Examples of brands and the emotions they foster:

– Nike = Performance. “I feel like I can run faster or jump higher when I wear my Nikes.”

– Target = Affordable Design. “At Wal-Mart, I get the best price. At Target, I get style and price.”

– Apple = CounterCulture. “I want style, simplicity and usability. My Mac says to the world that I’m different and unique. In short, I hate Windows and everything it represents.”

– Jason Milicki

I’m writing this blog on a MacBook Pro, and I’d add the word Contrarian. Proudly contrarian, even. (My kids helped make sushi for Thanksgiving, and my son dubbed it a “Contrarian Turkey Dinner.” I think I’m handing it down.)

Finally, here’s one parting thought on iconic brands, from yours truly:

You don’t have to be  a multinational company, or even the biggest player in your niche, to become a successful icon in your own right. Gerry Lopez is an icon in the world of surfing, yet unknown to the general public and to Wall Street.

If you want to build an iconic brand — even a small one — start with passion, purpose and focus. Then work your ass off.

Of course, BN Branding can help take some of the burden off  your shoulders. Call us. 541-815-0075. For more on the common attributes of iconic brands, try this post.

5 things all iconic brands have in common by BN Branding

 

Advertising in a crisis: Shit happens, but brands endure.

brand credibility from branding expertsEvery entrepreneur experiences setbacks… Markets crash. Key team members leave with your biggest accounts. There are supply-chain snaffus, natural disasters, and now, a novel virus that slams the door on a robust economy. It’s hard to know what to do when you’re advertising in a crisis, but this is when your branding efforts can really pay off.

All the work you’ve done over the years to stay visible and be a responsible, authentic brand will pay off in spades when times are tough.

Don’t get me wrong… I’m not saying that a nicely designed logo is going to make you magically immune from the business fallout of the Corona virus. (Logo is NOT synonymous with Brand and everyone will be affected)

brand credibilityI’m just saying that iconic brands are going to be more insulated — and more likely to survive — than the companies that haven’t been paying attention to branding.

This is a time of unprecedented uncertainty, and when people are unsure, scared or threatened, they want to be comforted.

It’s human nature.

We cling to what’s familiar, and we want an escape from the UNknown. We narrow our choices dramatically and don’t entertain new options. We buy Campbell’s soup and make grilled cheese sandwiches. We re-watch lighthearted TV shows from by-gone days to make ourselves feel grounded. Better.

So being known — ie. maintaining top of mind awareness during good times — is crucial in this situation. The best brands know this, and maintain a presence all the time. In good times and bad. They don’t wait for disaster to strike, they’re communicating with people all along. That’s what breeds fondness and familiarity,

If you’ve been invisible in your market you need to be very careful about launching a knee-jerk reaction ad campaign right now. Especially if your ads start with “now, more than ever…”

Now, more than ever, you need a new Kia.
Now, more than ever, you need to refinance your house.
Now, more than ever, you need a financial planner.
Now, more than ever, you need a lot of Kirkland brand toilet paper.

We saw thousands of fill-in-the-blank ads like that during the crash of 2009, and the same thing’s beginning to pop up on social media, in email campaigns, and on the airwaves. Cliches like that are NOT going to help your brand. They just add to the clutter and fuel the fear. So if you are going to run advertising during a crisis, it better be a complete departure from that.

So this is a good time to step back and re-evaluate the tone, content and context of your brand messages.

Advertising during a crisis should not be business as usual. It makes for bad optics.

Take Kia for instance, the automotive king of “yell and sell” advertising. They’ve established clear leadership in top-of-mind awareness, but it would probably be wise for them to stop running their current advertising that screams “Credit, come and get it.” “Credit, come and get it.””Credit, come and get it.”

More debt is the LAST thing people need right now. Sometimes the best ad strategy is knowing when to shut up!

It’s almost as bad as running TV spots for a “fire sale” when there are forest fires burning all over the West. It sounds dreadfully callous, given the current state of affairs. (I wonder who decided that predatory lending practices should be a key brand attribute for Kia, but that’s another issue entirely.)

Any advertising that attempts to capitalize on the world’s misfortune will be seen for what it is: Cheap profiteering. If you’re not careful, the public will forever associate your brand with the outbreak of 2020 and will never buy into any messaging you attempt in the future.

But when it’s done well, advertising during these “slow” times can help you reach more people and solidify relationships. Media consumption is up, while most companies are pulling back, ducking the exposure.

So if your message is human, heartfelt and kind you have a real opportunity to differentiate yourself. (And ad rates are lower than normal!)

But you can’t pull a Kia-style hard sell. In fact, you shouldn’t sell at all. This is not the time to persuade, it’s the time to reassure without asking for anything in return. Just stay aligned with your brand brand values and communicate what’s important, right now.

This is new territory…  even the most hardened business veterans haven’t faced anything quite like this. It’s going to leave a mark on us all, if not a festering wound.

So I’m not going to serve up platitudes like “It’s going to be okay” or “This too shall pass.” I’m sure as hell not going to say you need more advertising during a crisis or “now more than ever you need a branding firm.”

But I will share one of my favorite sayings… it’s an old Japanese proverb:

“Action is the antidote for despair.”

Do something. But stay safe.

If you don’t know how to proceed and would like some advice, even for the short term, give me a call. We can do a quick assessment and help you devise a smart response to all the mayhem.

BN Branding's Brand Insight Blog

 

 

 

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

 

3 brand strategy from BNBranding bend oregon

Brands that are built to last. (Jim Collins on brand values)

BNBranding logoBuilt To Last, by Jim Collins, is commonly known as one of the most influential business books ever written. It’s on every consultant’s bookshelf and should be required reading for any executive, business owner or budding entrepreneur who cares about brand values.

It’s also one of the best branding books you’ll ever read.

built_to_lastYou have to read between the lines though, because Collins never used the words “brand” or “branding.” Back in 1994 it just wasn’t on his radar.

Collins and his co-author Jerry Porras focused instead on “visionary” companies and compared them, head-to-head, with not-so-visionary competitors.

It’s a how-to book on building an iconic brand.

They found that “core ideology” is a common element of success among all visionary companies. Those organizations have strong, enduring principles that go beyond just profits. Call it a cause. A purpose. A set of principles… Whatever.

The point is, if you want to build a visionary company – or a great, enduring brand — you have to start by knowing who you are, what you stand for, and why you exist.

Collins used this equation: Core Values + Purpose = Core Ideology. The Brand Insight spin: Core Values + Purpose = the foundation of your branding efforts. Core Ideology is another way to say Core Brand Values.

If you’re launching a new brand or reevaluating an existing one, start with that equation. Dig below the surface, identify those core brand values, and ask yourself these fundamental questions: “What business are we really in? Why are we doing this? What do we fundamentally believe in?”

 

Sounds simple enough, but there are millions of business owners and entrepreneurs who never give those questions a second thought. (Too much navel-gazing, I suppose.)

These are the people who figure “success” is enough of a purpose and you shouldn’t waste time or resources on things like branding. But as Collins proved, it’s those core values that set great companies apart from also-rans.

And the great brands from wannabes.

“Contrary to business school doctrine, maximizing shareholder wealth has not been a dominant driving force or primary objective of any visionary company down through history,” Collins said. “They are guided by a set of core values, and they preserve those core values almost religiously… They change and adapt without compromising their cherished core ideals.”

That’s what brand strategy is all about.

Jeff Bezos at Amazon understands that his brand goes way beyond selling books. And Phil Knight knows it’s not just the shoes at Nike. (Interestingly, both of those brands would probably fit Collins’ criteria of a “visionary” company.)

Branding firm BNBrandingHere’s another important finding from Built To Last: Ideology must be authentic and integrated seamlessly into everything the company does.

Same with brands. If your core brand values aren’t authentic, consumers will figure it out. They’ll see through the marketing hype and recognize the disconnect every time.

brand values on the Brand Insight Blog from BNBranding in Bend OregonHere’s a good example: Tommy Hilfiger used to be the hottest thing in fashion. His clothing was successfully positioned as a more affordable version of Ralph Lauren. Young, somewhat preppy suburban WASPs were buying lots of Hilfiger outfits that would blend well at any yacht club. Tommy Hilfiger was a young, accessible Ralf Lauren.

But in the late 90’s the Hilfiger line caught on big-time in the hip-hop community. When the Hilfiger logo started appearing in rap videos the company saw what was happening and thought, wow, we’re really hot in that market. We should start designing clothes specifically for them.

Hilfiger temporarily abandoned the brand ideology that made the company so successful and tried to cater to the African American market by adding bling to their clothes. Instead of just accepting the business and riding the trend as it was, they altered the Hilfiger aesthetic.

“We jeweled it, we studded it and we really pushed the envelope,” Hilfiger said in a 2001 interview. They also launched an ad campaign focused on the urban, street culture.

The African-American community saw right through it and was immediately turned off. Pandering!

Donny Deutsch once said it was “the single stupidest blunder in the history of advertising.When the advertising went street, he lost the street.”

Plus, Hilfiger’s core audience in the white community saw the ads, said “that’s not me,” and quit buying. Sales plummeted.

As one wall street analyst put it, “that brand will never again be the hot, flashy, overly talked about, fast-growing company it once was.”

Hilfiger might not make the criteria for Collins’s book, but the iconic fashion designer has learned a good lesson through all the ups and downs of the past 30 years. In 2010 he spoke at a Wharton University conference…

“We made the mistake of following a trend that was going to be short-lived,”Hilfiger said. “Because any trend is short-lived. If you keep the heritage of the brand intact when you do another product, and it appears to be coming from the same mother, then you’re doing the right thing. But if it doesn’t conform to the core brand, it is a mistake.”

“Stimulate progress, but preserve the core,” it says in Collin’s book. Hilfiger abandoned the core in order to leverage a pop culture trend, and it backfired on him. The brand has found its way back to its original roots and through strong international growth, posted its biggest year ever in 2015.

Built To Last is, predominantly, a management and operations manual inspired by visionary companies including Ford, Boring, HP, Marriott, Nordstorn, Sony, Disney and other old, Fortune-500 companies.

But the framework of business success can be applied to any business of any size. Not only that, it’s a framework that applies directly to the discipline of branding and specifically, how you establish brand values.

Collins found that visionary companies have “cult-like” corporate cultures. Everyone is indoctrinated into the core ideology and they follow it faithfully. (Ever seen a Wal-Mart sales meeting!) You could say the same thing about today’s most powerful brands… Apple and Amazon.

There are so many parallels I’m tempted to say, just maybe, “Visionary company” is synonymous with “great brand.”

For more on brand values and how to build a lasting, iconic brand, try THIS post.

Keen branding

1 research for branding strategies

Fake thrills and false advertising — Another automotive marketing misfire.

BN Branding's iconic brand identityAutomotive advertising, as a category, is notoriously bad. The big brands seldom produce memorable spots, print ads or campaigns. And at the dealer level there’s nothing but obnoxious yell & sell retail ads. Many have been accused of false advertising.

Let’s look at a campaign for the Toyota Camry… This isn’t what I’d call blatantly false advertising. It’s more like delusional, wishful thinking.

You have to start with this fact: The Camry is not an exciting car.

In fact, some automotive writers contend that Toyota’s building nothing but vanilla-flavored toasters these days. Despite that, the Camry has been hugely successful and was the best-selling car in America for almost 20 years.

article on false advertising from BN Branding

Obviously, there’s a huge segment of the American car-buying population that does not care about horsepower, handling, sexiness or style.  They just want reliable, utilitarian, point-A to point-B transportation.

Plain old toasters on wheels.

My father drives one, and he fits the demographic perfectly… white, suburban 80-year old male who only drives a few miles a month. The last thing he’s looking for in a car is a thrill ride.

And yet here comes an ad campaign for the Camry, titled “Thrill Ride.”

What a great concept… a car as a high-speed turbulent thrill ride captured in a reality-TV format.

They built an elaborate, hot-wheels style track and then too people for a rid up and down the hills, around the high-G turns, and into consumer’s hearts.  I want to drive!

I was enamored with the TV commercial at first.

Then I realized it’s a Camry commercial.

 

 

 

This is a classic case of a great advertising idea executed for the wrong brand. Some might even call it false advertising.

Once again, we have an automotive brand trying to be something it’s not. If this campaign was for the Mazda Miata, then yeah. Maybe it would work.

The whole idea is misaligned with the Camry brand. “Thrill Ride” is not the least bit authentic, nor is it relevant to the people who might really be interested in a Camry. (They might have fond memories of ancient, wooden roller coasters, but they don’t want to ride on one.)

And what’s worse, the spot doesn’t even deliver on its ill-advised promise of being thrilling.

The so-called “thrill course”  features one little hill, a banked turn, and a tunnel.  There are relatively young, hip people riding shotgun as the Camry inches its way around the course. It’s a reality TV on Geritol.

I can understand why the Brand Managers at Toyota would want to appeal to a younger audience. And I can even go along with the premise of being a little bit more fun. But why do it in a way that’s utterly fake and out of context?

Why leap all the way to “thrilling?”  Consumers are too smart for that. As one YouTube viewer wrote, “So you’re basically saying that the only way your Camry will be exciting is to drive it on some mock roller coaster course.”

Brand Insight Blog article on false advertising

Why couldn’t they advertise the car’s popularity and reliability and resell value, but in a fun way?

“Among the boring sedans targeting people over 50, the Camry is the MOST FUN!” That, I could buy.

But there’s no way Toyota will every convince people that the Camry is thrilling. They could launch one into space and parachute it back to earth, RedBull style, and it’d still be a boring brand.

But in this case, boring is good. People eat it up!  Why are they trying to be something else? There are plenty of thrilling cars already on the market that don’t sell nearly as well as the Camry.

Bloomberg News reports that in 2014  the era of Camry dominance could run out. There’s a lot of competition in the midsize sedan segment from Kia, Honda, Huyndai and the Ford Fusion. Perhaps the Camry spot was a knee-jerk reaction to the Fusion, with Toyota execs saying, “we gotta be cooler and appeal to a younger target audience like they have.”

Good luck with that.

Assuming you built a thrill course worth its salt, the spot would work brilliantly for BMW’s Mini brand. The Mini is a car that runs on rails, delivers thrills and is genuinely fun in every way. The analogy works.

With the Camry it falls on deaf ears.

At the end of the commercial one of the actors says, “like maybe I’ll look at a Camry differently.”  That sounds like a line stolen right from the creative brief under the header “objective.” I seriously doubt this spot will do it.

False advertising vs. truth in advertising BNBrandingAnd more importantly, why would Toyota want people to look at the Camry  differently???  Seems to me, looking at it as the #1 selling car in the country with outstanding resell value and a super-high reliability rating would be plent

So here’s some advise for brand managers and business owners concerning false advertising or grandiose claims…

If you’re lucky enough to have the best-selling brand in your category, don’t pretend to be something else. Don’t lighten your offering in order to appeal to a seemingly broader audience. Stick to your core. Resist the temptation to leverage your brand it into some other line of work.

Stick with the core truth.

For example, if you’re Guinness Stout you don’t start advertising an American-style lager.

If you’re Harley Davidson you don’t start advertising a new line of lightweight motocross bikes.

If you have the best selling sedan in the country that happens to be a bit vanilla like the Camry, don’t try selling yourself as a spicy hot sporty sedan. You’re wasting your breath. And it’s basically false advertising.

For more on truth in advertising, try THIS post.

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7 marketing strategy in the golf equipment business

Golf industry marketing strategy – Parity vs “kickassery”

Let me tell you a story that illustrates the shortcomings of the typical golf industry marketing strategy…

I just bought a new driver. Not a two-year-old discounted driver, but a shiny new model from one of the biggest brands in golf. I did it for several reasons, none of which were rational:

• It’s been 8 years since I purchased a new club. I was due. I deserved it.

• A client of mine in the golf industry couldn’t shut up about this club. And he gave me a deal.

• I couldn’t find any consistency with my old, Adams driver.

• It was market research for this article.

It had nothing to do with distance. In fact, it had nothing to do with logic, or reason or need at all. People don’t buy clubs for logical reasons, any more than they join a country club for logical reasons. It’s purely emotional. 

First we decide, then we rationalize the decision with logic and reason. Gut then head.

 

Which brings me to the topic at hand: Golf industry marketing strategy has always revolved around logical lists of features and frequent product launches. And every launch promises a few more yards.

But these days, only the most wonky sales reps don’t get fired up about the frequent new product launches.

Because in golf, truly relevant product innovation is remarkably scarce. And when it does come along, it triggers a race of copycats, resulting in product parity across the board.

All the modern drivers are good. All the irons are good. And except for cosmetics, there’s no discernible difference between them. Those tiny little incremental engineering improvements are not relevant to 90% of the golfing public.

marketing in the golf equipment business

TaylorMade’s original “metal” wood was a true breakthrough that every manufacturer immediately copied. “Pittsburgh Persimmon” was a brilliant positioning statement, and it didn’t come out of the TaylorMade marketing department.

So when you’re in a category where there’s product parity, what can you do?

What’s the marketing strategy when the marketing story’s not baked into the product? When you have product parity?

You have to shift the battlefield away from the me-too product.

Take insurance, for instance. All policies are pretty much the same, so the battlefield has shifted away from product offerings to advertising messaging.

The brand becomes more relevant than the product.

So you have interesting, true-life stories in Farmer’s Hall of Claims.  “Been there, covered that.”

You have mayhem man for Allstate, Flo for Progressive, the Geico Gekko and squawking ducks for Aflac. They’re all striving for differentiation in a sea of same ‘ol products. (read more on insurance industry disruption)

That’s where great advertising can really make a difference. But that’s not the case in golf.

In the golf industry, product parity has produced messaging parity as well. All the brands are blurring into one.

This headline from a fairly recent Cobra Driver ad sums it up: “Scientifically engineered for insanely long drives.”

Sounds insanely generic to me. You could easily replace the Cobra brand name with Taylormade, Calloway, Ping or Cleveland, and no one would know the difference. They’re ALL claiming the same thing: More Distance. Longer, longer and longer yet!

The execs at Cobra are wasting hundreds of thousands of dollars conveying a message that applies to the entire category. So essentially, they’re advertising their competitor’s products as much as they’re promoting their own. TaylorMade and Calloway ought to thank them.

marketing strategy in the golf equipment business

In 2011 the execs at Callaway Golf recognized the need for something disruptive — something other than the next new product. They wanted to stir things up a bit, so they hired Justin Timberlake to be their “Creative Director.”

He said he was going to bring some Rock-n-roll “Kickassery” to the stodgy old golf market and appeal to a new generation of golfers.

Three ads were produced… filmed in Vegas with lots of pyrotechnics. Lots of flash. Starring Phil Michelson, Annika Sorrenstam and some guy named Quiros. The spots weren’t bad, but I suspect that the PR value of having Timberlake involved played better than the commercials.

The Callaway spots didn’t have a compelling story woven into them. It was all sizzle. No steak. Same old story.

Don’t you think that golfers have wised up to that promise by now? How can this month’s new driver be the longest driver ever built when last month’s driver made the same claim?

And the one before that, and the one before that. Give me a break.

In 2016 Tim Clarke, President of Wilson Golf, turned to reality TV in order to generate some kickassery for his brand. Wilson teamed up with The Golf Channel and did a Shark-Tank knock-off called “Driver vs. Driver” where ordinary folks were invited to submit ideas for a “groundbreaking new driver.”

With a $500,000 first prize it made for pretty good TV.

I have to hand it to him… Wilson’s not a major player in the golf club industry these days. (Not like they were back in the 60’s and 70’s.) Wilson drivers are simply not on the radar, and Clarke had the balls to try something completely different.

The result is the Triton driver, which is packed with every technological bell and whistle the Wilson engineers could possibly throw at it. It’s no better or worse than the top 10 drivers in the market, but there’s no doubt that many golfers who never would have thought of a Wilson Driver might at least give it a look. Or a few swings during demo days.

The show must have worked… Clarke recently signed-up for a second season. I’m not sure it’s going to ever product a breakthrough golf club, but it sure is a breakthrough marketing play for Wilson.

marketing strategy in the golf equipment business

No matter what they do for R&D, Wilson and all the other golf club brands have a hard time coming up with genuinely new innovations like what Barney Adams accomplished with his Tight Lies Hybrid club in 1995.

Adams recently wrote:

“The golf equipment industry is a lot more like the fashion industry than many people are willing to admit. The actual differences between products are minor and often subjective. We don’t want to copy, but we are remiss if we don’t look at what seems to be popular and decide how to position ourselves.”

All the major brands now have hybrid clubs that are patterned after the Barney Adams original hybrid. They all have 460cc head drivers patterned after the original Big Bertha. They all have adjustable drivers, patterned after the TaylorMade.

 

So the question is, what’s the marketing strategy in the golf equipment business when all the equipment is equal? What do you do?

You throw money at it. But wait, Nike already tried that.

One of the most successful marketing organizations in the history of the world gave up on the golf equipment business. Despite having unlimited funds, the finest club design facility (The Oven) and the biggest rock star golf has ever seen (Tiger) Nike never managed to gain more than a sliver of market share (3%) against Titlest, Calloway, Ping and Taylormade.

In fact, Phil Knight recently said that they “lost money for 20 years” on golf balls and equipment.

One could argue that it was a classic, line-extension faux pas… They assumed that their success with golf shoes and golf apparel would translate directly into golf equipment.

But Nike is a shoe company. That’s the brand’s position in the mind of every golfer and no amount of money, marketing muscle, or Tiger-inspired fervor could change that perception. Consumers could understand and embrace Nike golf shoes but not Nike golf clubs or golf balls. It just didn’t compute.

Phil Knight is famous for saying “We’re a marketing organization and the product is our best marketing tool.” But that did not translate to the golf club market. Their clubs were good, but not better. Not differentiated.

So the Nike execs decided to pull the plug and go back to what Nike’s known for…

“We’re committed to being the undisputed leader in golf footwear and apparel,” said Trevor Edwards, president of the Nike brand.

Nike’s closest competitor, Adidas, also divested itself of its golf equipment business recently by selling TaylorMade Golf to a private equity firm.

That was a different deal altogether. Wisely, Adidas didn’t try to market their Adidas golf clubs. In 1999 they purchased TaylorMade, the originator of the metal wood and #2 in the market at the time.

At that time TaylorMade was owned by a ski boot company and was limping along with an ugly, bubble-shafted driver. Callaway had stolen the lead on the strength of the Big Bertha, so Adidas brought in a new management team who decided to shake things up dramatically at TaylorMade.

Their disruptive new marketing strategy was operationally-based… Faster turnaround from one product launch to the next. (If you’re going to compete in a market of me-too products, might as well turn them around faster than anyone else.)

marketing strategy in the golf equipment business

First they launched three different drivers at the same time. Then they jumped immediately from the R300 series to the R500 series, basically doubling the speed of new product intros.

And it worked like crazy.

By the end of 2004 they had transformed TaylorMade from a $330 million second place player into a $552 million market leader (TaylorMade’s reign at the top lasted until January 2017, when they were once again overtaken by Callaway.)

Despite the company’s decade-long run at the top,  it still wasn’t profitable enough for Adidas to hang onto. According to the NYPost, TaylorMade “is deep in the red, losing around $80 million a year.

Perhaps it’s because they created a monster with their ultra-rapid release cycles. (When you’re selling more discounted, out-of-date drivers than you are new drivers, your brand is going to suffer.)

Or maybe it was mass confusion…  There’s no way the average consumer could decipher the difference between all those different models.

Or maybe it’s because of the messages that keep getting regurgitated with every new product release. The faster they launch, the more redundant, annoying and inauthentic the message becomes.

See, golfers have an innate sense for bullshit.

When a guy tells you that he crushed a drive 325 yards uphill, just the other day, we know he’s full of it. When a guy miraculously finds his ball, after a long search, and has a clear shot at the green, we smell a rat.

And sandbaggers… forget about it!

So, eventually, the ever-increasing volume and frequency of the same old message starts having a detrimental effect. Not only do we stop believing, we start resenting the ridiculousness of it all. Rocketballz was deemed to be even “Rocketballzier,” and consumers were calling BS on that.

But wait, it gets worse…  Even golf shoes can help us hit it farther these days.

Get a load of these he-man headlines from a recent Addidas campaign:  “Lock and load… 14 weapons in your bag. Two on your feet.” “Not a shoe, a piece of artillery.” 

Hoo-Ha!

The brand managers at Adidas are assuming that high tech features and a Rambo tone will sell shoes just as well as drivers. But as Spike Lee once said, “Is it the shoes? Is it the shoes? Is it the shoes?”

I think not. No one’s going to believe that shoes are equipment, on par with a new driver.

Here’s the copy from one of those shoe ads: “Three distinct power geometry zones in the outsole for maximum energy transfer during the load phase, impact and finish.”  

Sounds just like a driver ad. You can tell the engineers wrote that one.

Here’s what consumers will say: “Yeah, Whatever!…  They’re not too ugly. Are they comfortable?  Do they have them in my size?  How much?”  That’s what’s relevant to Joe six pack.

The claim that “high-tech features will make you hit it farther” may have worked for drivers, but it’s just too much of a stretch for golf shoes.

Here’s another golf headline that is utterly baffling to me: “GOLF MADE EASY” for Cobra Max.

Really??? That one’s even less believable than the generic “more distance” claim. Please, if you work for Cobra, give me a call. I’ll give you 20 reasons why you should delete that headline from your ads immediately. And I’ll give you 20 alternatives that will improved the click-through rates of those digital ads. Seriously.

Golf  is a category that takes itself quite seriously, indeed. In that type of environment, humor can be a refreshingly effective way to differentiate your brand.

Titlest did it with John Cleese for the NXT Tour golf ball. FootJoy pulled if off brilliantly with their Sign Boy campaign. And Mizuno scored with a series of ads poking fun at the almost obsessive loyalty of their customers.

The Mizuno campaign is a rare example of golf advertising that was customer-focused, not product focused.

They leveraged the passion of Mizuno owners… guys who love their clubs so much they buy an extra seat on the plane rather than checking their bags. The ads were purposely, humorously, exaggerated, but they captured the authentic passion for the Mizuno brand that no competitor could claim.

Those ads would absolutely not work for any other club company. I don’t play Mizuno irons, but I aspire to. And those ads spoke to me.

With a wink and a nod, Mizuno confirmed what I already thought… that their forged irons are for smart, accomplished players who know something the rest of the golf world doesn’t know.

marketing strategy in the golf equipment business

Sad to say, Mizuno soon dumped that campaign and started running ads that lack the market wisdom, the emotional connection and the brand personality of the old ads. In fact, the new ads are generic enough to speak for any iron on the market.

Another worthless, invisible message about distance. For a brand that’s known for its buttery feel. Go figure.More message parity.

Successful marketing strategy in the golf equipment business involves some degree of differentiation. In a perfect world, you’d have something different to say, AND you’d say things differently.

Your story would be unique to your brand, AND the execution of the story would be more creative than anything else in the market. That’s the ultimate recipe for advertising success.

Mizuno and Adidas both have great products with a good story to tell. It shouldn’t be that hard to come up with an ad campaign that conveys the core brand benefit in a relevant manner, without resorting to the same, stupid promise of distance.

Remember the boy who cried wolf a few too many times?

My new driver seems to be working pretty well. But maybe my expectations are a little different than most… I don’t expect monumental gains in distance.

I don’t need kickassery. And I seriously doubt that it’ll be “Epic.”

I’m content with a smaller dispersion pattern and a little boost of confidence.

If you’re in the golf business, and you want to build a brand that’s highly differentiated, and tremendously profitable, give us a call.

 

Want to learn more about disruption as a marketing discipline? Try THIS POST.  

Need help building your golf brand? E-mail me directly: JohnF@BNBranding.com

6

Marketing for financial advisors – beyond gift baskets

BNBranding logoIt was one hell of a gift basket, piled high with a delicious assortment of treats… Not unusual for the holiday season, except it came from my financial advisor.

First gift ever from a planner who I’ve worked with for more than 10 years. Apparently, the stock market’s rise inspired her to do a little outreach. That’s one of the problems with marketing for financial advisors… it’s a fair weather affair.  (She stays conspicuously quiet when the market is tanking.)

marketing for financial advisors BNBranding

Her marketing efforts are being driven by outside forces, beyond her control.

Unfortunately, her current clients see the effort for what it is. (Just buttering us up for the bad news to come.) And new prospects aren’t swayed because her personal brand isn’t strong enough to weather the whims of Wall Street.

Her brand has no differentiation and little visibility.

 

 

 

 

Here’s an example of the typical marketing for financial advisors…

• Monthly Chamber of Commerce breakfast meeting.

• Christmas card to all clients. (Gift baskets are typically reserved for only the top three or four clients.)

• One-page, off-the shelf website, never to be touched again once it’s up and running.

• Annual guest speaker luncheon. (Bring in a so-called “expert” spokesperson, book a room at a local hotel, cater lunch and then bore us to tears. If I wanted to know all that stuff, I’d do my own trading.)

It’s more of a tactical to-do list than an actual marketing plan. There’s no strategy at all. In the past it might have worked… She could get by on her good looks and good news from a bull market.

Not any more. There’s just too much competition on too many different fronts.

Compensation for independent financial advisors is typically based either on a flat fee, or on a percentage of the total assets under management (AUM). If it’s $100 million of other people’s money, they typically make 1% of that. A million bucks gross.

The problem is, when the market “corrects” itself, they might see a 30-40% drop in AUM, so they start scrambling to find new clients.

Choose one main thing BNBrandingMost just ratchet-up their networking efforts, hoping for more word-of-mouth. But it’s tough when they’ve been silent for years.

Some have discovered a new, more lucrative pipeline: Internet-based lead generation services.

Advisors sign up with an independent web directory and they pay only for highly qualified referrals. Very little effort for financial advisors. Very big ROI.

Independent, third-party directories also fill a vital role for consumers: They help simplify  the search and match prospects with a financial advisor who fits.

It’s a vexing decision, choosing someone to handle your life savings. And most financial advisor web sites  have the same, stock-photo look, and the same brochure-style copy. Very, very few have any sort of specialty or market niche.

On-line directories have been done successfully in the education market, travel, real estate,  and the auto industry. So why not financial advisors?

When prospects go on line to research “financial advisors” they begin with Google. But Google can’t sort or organize the category in a helpful way. That’s where directories come in…  they categorize advisors, provide details on specific services and nudge prospects along in the decision making process.

So assuming that you have some sort of specialty or differentiating featues, you can get a steady stream of very qualified leads and search engine optimization you could never achieve on your own.

In this day and age, marketing for financial advisors has to go beyond a static website and a Facebook page.

If you really are an expert financial planner, share your knowledge and your unique insight by writing a blog. Establish a presence for you and your personal brand in places where your direct competitors aren’t.

Do something, ANYTHING, that’s different from what you’ve always done.

Most professionals who run small service businesses believe  networking is enough. But that’s not the case right now for financial advisors. There’s no gift basket big enough for the job ahead. It’s time to start employing some new marketing tactics.

But before you dive in, consider your strategy. Because tactics without a strategy is like a ship with no rudder. For more on Strategy vs. Tactics, try this post.

If you want an idea that will dramatically differentiate you from all the other hungry financial advisors and help you retain clients without the use of lavish gifts, send me an e-mail: johnf@bnbranding.com.

For more info, try this post.

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Marketing lessons from the not-so-surprising failure of Sears

Marketing lessons from Sears on the Brand Insight Blog from BNBrandingbrand credibility from branding expertsThe recent demise of Sears, once the country’s largest retailer, is replete with valuable marketing lessons for business owners, entrepreneurs, marketing execs and brand managers.

It’s a classic American entrepreneurial tale.

When the Sears store in my hometown closed its doors. a 60 year presence in the market I was not exactly distraught.

I bought a few tools there, once upon a time. And an appliance or two, but I certainly wouldn’t say I had any fond memories of the place, much less brand allegiance.

Sears dates all the way back to 1886 when Richard Sears started selling watches to his coworkers at the railroad. Alvah Roebuck was his watchmaker, and in 1893 the name Sears Roebuck & Co. was incorporated.

 

 

marketing lessons from Sears and BNBranding in Bend OregonSears grew rapidly by selling all sorts of merchandise through the mail at a price that undercut the local mercantile. The product offerings were broad — everything from violins to patent medicines and do-it-yourself houses — but the target market was narrowly defined: small towns where the general mercantile was the only real competition.

It was wildly successful niche marketing for more than100years.marketing lessons from sears on the Brand Insight Blog by John Furgurson

Sears went public in 1901 and in 1925 the first Sears store opened, in Chicago.Mr. Sears got ridiculously rich. Industrialist, oil baron rich.

By 1933 they had 300 stores and the mail order business began to take a back seat to the retail business.

Over the next 50 years Sears became a multi-national retail empire, with 2200 stores and the world’s tallest building as its corporate headquarters. The company obviously did a lot of things right over the years.

For instance, Forbes Magazine reported that “Sears successfully developed some of the strongest and most famous private-label brands in history.  Those brands include Craftsman tools, Kenmore appliances, Diehard batteries, Weatherbeater paint, and Roadhandler tires.

Marketing lessons from Craftsman on the brand insight blog

One of many successful brands that Sears built.

Those are great names, and the success of those product lines is textbook branding. Someone at Sears was well advised to resist the line extension trap and NOT put the Sears name on a car battery or a paint can.

Some Wall Street insiders believe it’s those proprietary brands that could save Sears from its current “slow motion liquidation.” In fact, there have been rumors that Sears will begin selling some of those brands through other retailers, including Costco. Maybe there’s a future for Sears as a wholesaler???

Sears is a good example of how success often leads to temptation and complacency. Temptation to expand and diversify into other businesses and complacency when it comes to the core of the brand. (I’m not sure anyone in the last 30 years could even define the core of the Sears brand. They were all over the place!)

Sears got into the insurance business with AllState, the financial services business by buying Dean Witter Reynolds, the real estate business with the purchase of Coldwell Banker and even the credit card business, with the launch of the Discover Card.

In the meantime, they missed an opportunity to dominate the direct marketing business, they neglected their retail stores, failed to convert their catalog into a successful ecommerce business, and let their wildly popular private label brands languish.

So much for a clearly defined Sears niche.

For 20 years Sears has been trying to re-position itself as a competitor to Macy’s, JCPenny, Kohl’s and Target. Remember the slogan, “The softer side of Sears?” That was an ill-fated attempt to sell clothing. Now they have the Kardashian Collection. Yikes!

Marketing lessons from The Kardashian Collection. Does this look like Sears to you?

The Kardashian Collection. Does this look like Sears to you?

Forbes magazine reported: “Sears is relying mainly on inauthentic celebrity exclusives (does anyone really believe that Kim Kardashian would actually shop at Sears?) to attract younger, fashion-conscious consumers, and it is clear that Sears has lost its way.”

As Laura Ries put it, “When faced with a broadening of its category, Sears should have narrowed its focus and become a specialist. Instead of shifting to the “softer side of Sears,” the retailer should have further embraced its harder side.”

The department store niche is not the answer to Sears’ problems. Walmart has taken both the price and one-stop shopping advantage.

Target is positioned as the trendy, aspirational choice for millennial girls.

Home Depot is the place to go for home improvement.

has the online convenience advantage. Best Buy dominates in electronics. Lowes is succeeding with appliances. There’s just no room for a general purpose department store that’s trying to be all things to all people.

Even if there wasn’t all that competition, you’d still never convince people that Sears is a good place to buy clothing. That was never going to fly!

Sears Brand car battery

Not sure what can jump start Sears at this point.

It will be very interesting to see what becomes of the company now that it’s merged with Kmart and owned by infamous hedge fund manager Eddie Lampbert. The stock has lost half its value. They’re closing 120 stores this year. And there doesn’t seem to be a plan in place to revive it.

The company’s latest hail-mary strategy  is “a free social shopping destination and loyalty rewards program called “Shop Your Way.” (Note to management: A loyalty program’s probably not going to work too well in all these towns where the stores have been shuttered.)

Even the most beloved retail chains have a hard time with loyalty programs. A recent study by McKinsey & Co. found that despite their general growth and popularity, loyalty programs actually erode margins and destroy value for their owners. Companies with them grew no faster than — and sometimes slower than — those without loyalty programs.

The latest update on the Sears saga has Lampbert borrowing a page from Donald Trump’s playbook, blaming irresponsible media coverage for Sears’ troubles.

According to the Business News, Sears has not shown a profit in the last six years. And talk about spin… Lampbert went so far as to liken that performance to Amazon’s early years.

That’s delusional leadership.

Crain’s Chicago Business summed it up the best:  “If the hedge-fund mogul knew how to fix Sears, he’d have done it by now.”

There are only two things the company has going for it: massive real estate holdings, and some great brands NOT named Sears.

For more marketing lessons and insight on marketing leadership, try this post.

a new approach to website design BNBranding

1 Pepsi logo redesign – A new spin on the Pepsi logo.

The Pepsi logo redesign is generating hives of buzz in branding and design circles. It’s not surprising… whenever you start messing around with one of the world’s most recognized commercial icons, people are going to talk.

image_pepsi_newcan1But it’s not like grocery carts are piling up in the beverage isle while soccer moms wax eloquent about the new design aesthetic. The general public could care less.

Nope, the initial armchair quarterbacking was limited to graphic design forums and beverage industry trade pubs.

“I love it.”

“I hate it.”

“It looks like the Obama logo.”

“It’s not young enough.”

“It’s static, empty and vaguely bland.”

“It’s demonic brainwashing.”

All the usual responses to a major branding makeover. But now, since the “rationale” for the new logo is circulating on the web, the debate has taken on a viral life of its own.

 

 

The 27-page design brief for the Pepsi logo redesign entitled “Breathtaking” reads like a scientific white paper loaded with marketingese and unprecedented levels of highly creative BS. In fact, Fast Company Magazine called it branding lunacy…

“Every page of this document is more ridiculous than the last ending with a pseudo-scientific explanation of how Pepsi’s new branding identity will manifest it’s own gravitational pull.”

The L.A. Times was equally critical:

“Behold, then, the scattered and burning debris field of one of corporate America’s most misbegotten image makeovers… According to the brief, the new Pepsi logo lies along a trajectory of human consciousness that includes in its arc the Vastu Shastra, a 3,000-year-old Hindu architectural guide; Pythagoras (the Golden Section); the Roman architect Vitruvius; the Fibonacci series; Descartes; and Corbusier.”

Oooookay.

(Kinda reminds me of the rationale used to justify an empty blue rectangle for the Nationwide Insurance Logo. But in this case, the design itself isn’t that bad.)

Maybe the controversy is what the design firm, Arnell, had in mind all along.

There’s talk of the whole thing being a hoax, that Arnell created the brief document AFTER  the fact just to poke fun at their critics and generate media attention.

If that’s the case, the stunt has backfired, big time.

The brief makes Arnell look like corporate bandits, it makes Pepsi look bad for buying into the rationale, and it discredits the entire branding industry.

It’s hard enough to get C-level executives to take branding seriously, without this kind of nonsense floating around.

Great design speaks for itself. You don’t need a physics thesis to explain it. It just works.

My 11 year-old daughter likes the new Pepsi logo redesign. (Says it makes her happy.)  And now that I’ve read the exhaustive brief, I know why…

pepsi-happy-facesIt’s a smiley face.

An overanalyzed, underwhelming, million dollar smiley face. It even comes in a variety of grin sizes. (Apparently regular ol’ Pepsi gets a smaller grin than the newer versions of Pepsi, like Pepsi Max. Whatever that is.)

Pepsi’s going to spend more than a billion dollars redoing all their packaging, vending machines, trucks, POP materials and everything else. The new logo’s going to be EVERYWHERE!

So I’m kinda glad Arnell changed the old wavy logo into a smiley face. I’m just not sure about their methods.

For more on corporate rebranding and logo design, try this post.