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Personal branding from BNBranding

4 Ingredients of small-business branding – Learning from breakfast cereal and a 4-buck burrito

small-business branding from branding experts at BNBrandingBranding is a popular topic in the business press and in business schools these days. Unfortunately, coverage of big brands like Tesla, Nike and Virgin make it sound as if Branding is a discipline reserved only for Fortune 500 companies and globe-trotting billionaires. As if small-business branding isn’t even a thing.

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

Small-business branding is very doable. In fact, many business owners do it intuitively. They build a successful business, step by step, year after year, and eventually a great brand emerges.

small business branding from bnbrandingIt does not happen the other way around.

You can’t just come up with a nice name and a great logo and expect the business to become a successful brand overnight. Without a good, solid business operation and a realistic brand strategy, you’ll never have a great brand.

If you look closely you can find plenty of inspiring brands in everyday places. Like the breakfast table and the local Mexican restaurant.

Because the fact is, branding is not exclusive to big business. If you deconstruct it, you’ll see that small-business branding shares four important things with fortune 500 branding:

Relevance. Credibility. Differentiation. Consistency.

Forget about Proctor & Gamble for a minute and consider the small businesses branding case studies in your town or neighborhood.

Think about the little guys who have a ridiculously loyal following. What makes them successful? What have the owners done that turned their typical small business into an iconic local brand?

small-business branding - big fat burrito from the brand insight blog BNBrandingIn Bend, Oregon there used to be a popular little restaurant named, simply, “Taco Stand.” It wasn’t the best Mexican food in town, but for many years it was the most popular, despite an embarrassing location and many other shortcomings.

Taco Stand was in a tiny building in a hard-to-find spot next to a run-down laundry mat.

It was never open for dinner. They had no web presence, advertising budget or social media following. And yet, for 20 years it was a successful little business, doing much better than many high-end restaurants downtown.

Taco Stand had all four ingredients of an iconic brand, with a bit of Tabasco thrown in for good measure.

The owners of Taco Stand consistently delivered on a very simple value proposition: Big flavor for a small price. All the locals knew you could get a big, great-tasting burrito for very little dinero.

They never wavered from that focus. Consistency led to a loyal following, which added to their credibility, which led to profitability. There’s good money in rice and beans.

Small-business branding and a big-business blunder.

Most people think differentiation and credibility is easy for big corporations. Companies like Kellogg’s can launch a new brand with a massive multi-media campaign, effectively differentiating their product on nothing but advertising creativity and pretty packaging.

But even the big boys make mistakes that leave a bad taste.

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

The idea at Kellogg’s was to launch a cereal that could compete with all the rising stars of the natural foods industry. The consumer trend was overwhelming… people wanted healthier breakfast alternatives. They wanted whole grains, fiber and good taste without all the sugar.

So Smart Start was positioned as a “healthy” and “wholesome”adult cereal. The elegantly set promo copy described it as “Lightly sweetened, toasted multi-grain flakes and crunchy oat clusters.”

It was launched in 1998 with beautiful, minimalistic package design from Duffy & Partners and a Fortune-500 style marketing effort with lots of  full page, full color ads in targeted magazines like Shape and Parenting.

Great name. Great-tasting product. The greatest package design in the history of breakfast cereal. And a premise that was complete BS.

When my kids were young they liked Smart Start. And for some reason I felt okay about serving it to them, despite the fact that I knew it was a big, fat lie.

One glance at the ingredient list and you’ll see that Smart Start isn’t as nutritious as it’s cracked up to be.  It’s loaded with sugar… 18 grams of sugar plus high fructose corn syrup, honey,  molassass,  sugar, sugar and more sugar.  That’s more than Fruit Loops, Cocoa Puffs or Cap’n Crunch.

So much for credibility. So much for authenticity.

From day one, Smart Start was built around a brand promise that the product could never deliver upon. It was doomed from the start because the actual product was not aligned with the brand promise.

Over the lifespan of that product Kellogg’s tried a number of things to stem the bleeding. Rather than addressing the underlying weakness of the product, they tired the old line-extension trick… They did a “Strong Heart” variation that has 17 grams of sugar, a Strawberry Oat Bites variety and an antioxidant variety.)

Just keep launching new flavors and spin-offs of Smart Start , maybe they’ll forget about its UN-healthiness.

The packaging also devolved over the years… what started as a distinguished, minimalistic design slowly become less and less unique with every variation.

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

Even a big company like Kellogg’s, that has deep pockets and a 33% overall market share in the cereal isle, can’t get away with that.

In October 2019 Kellogg’s settled a $20 million class action suit for false claims of being “healthy” “nutritions” and “wholesome.” The suit involved five flavors of Raisin Bran, 16 types of Frosted Mini-Wheats, Smart Start cereals and 24 types of Nutri-Grain bars.

I bet they won’t be putting the American Heart Association logo on their packages from now on.

 

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

Smaller companies can’t afford to mess up like Kellogg’s. Credibility too hard to come by, under the best of circumstances. If you launch a new brand under false pretenses of any kind, you’re going to fail.

brand credibilityDon’t choose a name, like “Smart Start,” that cannot be substantiated by the facts.

Naming is hard, and when it’s not done right it’s a recipe for a small-business branding disaster. The name and the identity design and the packaging and the claims need to be aligned with the brand strategy and the product itself.

Make sure your product claims are not only truthful, but also relevant to the target audience. 

For instance, “Healthy” is not part of the Taco Stand value proposition. It would be a silly claim to make because people who want a big, cheap burrito don’t really care about healthfulness. It’s not relevant.

Credibility would also suffer because no one would believe that a Taco Stand burrito is really healthy.

Be consistently authentic.

If you serve a great, cheap lunch, don’t try to do fancy dinners. If you do sugary cereals, don’t try to compete in the health food world. The big food brands have learned that lesson… now they just buy-up successful natural food companies instead of trying to do their own brand.

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

For help with your small-business branding and marketing management, schedule a test drive with BNBranding. We’ll run you through a simple brand assessment that can help jump-start your branding efforts. 541-815-0075.

4

Back to Basics (A working definition of Branding and Brand)

BNBranding logoYou say tomato, I say tahmahto. He says branding, she says marketing.

No doubt, the language of marketing and branding can be very confusing. It has been for more than 50 years…

An article in the Journal of Marketing, way back in 1969, cites a clear problem with the imprecise, vague and misleading language of marketing.

“There is a plethora of fuzzy terms, contradicting definitions, and definitions that are not explicit enough… People have many different meanings for the same word.”

And it’s way worse now that we have so much questionable content floating around on the internet.

Every advertising agency, consulting firm, author and marketing professor has a slightly different spin on the subject of branding.

There’s brand positioning, brand personality, brand narrative, brand advertising and brand experience.  What’s it all mean?

Is Brand a noun or a verb? What exactly is the definition of branding?

So I’m going to aggregate the best branding definitions and boil them all down to provide some branding basics you can actually use in your day-to-day business. Even if you’re not in marketing.

Branding defined. The definition of Branding on the Brand Insight Blog

I’m going to answer these fundamental questions:

  1. What exactly IS the definition of Branding?
  2. How is that different than Brand?
  3. And why should the average business owner care about either one?

Let’s start with why…

Why should anyone who’s NOT in marketing, care about the definition of branding?

• Because branding will happen with or without you. Do you really want to leave it to chance?

• Because your competitors will kill you if they get good at it, and you’re not.

• Because the world’s most successful businesses are built on fundamentally sound brand values.

• Because you can’t be in business without doing branding. Of some kind.

• Because even the smallest business is a brand, of some sort. And everything you do in business is branding.

Like it or not, it all matters… The words you choose. The way you behave. The conversations you have. The card you hand out. The promises you make. The people you hire. The values you hold dear. The values you could care less about. The vendors you choose. The companies you’re affiliated with. The money you make, or don’t make. And, of course, the experience people have with the product or service you provide.

It’s the culmination of all those little things that makes “the brand.”

 

 

 

Unfortunately, there’s a lot of confusion and misinformation about the definition of branding and what goes into building a brand.

For instance, one article on Entrepreneur.com says “ The foundation of your brand is your logo.” Nonsense. The logo is a symbolic reflection of your brand.

Another prominent website missed it completely when they defined branding as “The marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products.”

David Ogilvy, the granddad of modern advertising defined “brand” as the “the intangible sum of a product’s attributes.”

With all due respect, that’s not right either. Ogilvy’s definition is completely product-focused.

It’s not just about your product, it’s also about the people, and their values, and the company culture, and so much more…

Branding is not, exclusively, a marketing practice. It’s also a customer service practice. A management practice. An HR practice. An R&D practice. Even a manufacturing practice. Because making a great product that people will talk about is the best form of branding.

definition of branding and brands BN BrandingThe first thing to do is distinguish between “brand” as a corporate mark or logo, and “brand” as an overriding business concept.

Stop thinking of “The Brand” as icing on the cake that makes your business more tasty. The Brand is the whole recipe. Every last ingredient.

When business executives talk about “the Nike Brand” with a capital B, they’re not referring to the logo or to the “Just Do It” tagline.  They’re referring to something more holistic. More conceptual. And far bigger than just design or advertising.

This, from Wikipedia: “A brand is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service.”

“Symbolic Construct” seems a bit academic to me. How about “gut feeling.” Or “mental concept.”

Or this simplified definition, from Alan Adamson’s great book, BrandSimple:  “A brand is what your product or service stands for in people’s minds. Brands live in your head… Mental associations that get stirred up when you think of a particular car or camera or watch or pair of jeans.”

Now we’re getting somewhere.

A brand is the most valuable piece of real estate in the world; the corner of someone’s mind. You need two things in order to occupy that valuable space:

  1. An idea.
  2. Trust.

Adamson, from Landor & Associates continues: “You can’t do branding unless you have a meaningful brand idea. Brand is an idea. Branding is the transmission of the idea, the signals your send”…

Your brand name is a signal. Your logo is a signal. Your tagline is a signal. Every ad you run and every social media post is a signal.

Branding is the cumulative effect of all those signals. It’s how you  how you communicate that differentiated meaning, the signals people receive, and the perception in people’s minds.

It’s about associative memory, and those associations are different for every individual.

One of the best analogies for branding that I’ve found comes from Jim Stengel, former CMO of Proctor & Gamble. He likes to think of it as tree:

Brands are like trees. BN Branding analogy on the Brand Insight Blog

A little heart shaped tree with roots and a grungy texture applied and red heart

“Brands are living things. Like trees, they have roots that people do not see, they thrive in the right conditions and they die without care, feeding and the freedom to grow.”

Scott Bedbury, of Nike and Starbucks fame, concurs: “Brands become living, psychological concepts we hold in our minds for years.”

In Brand Warfare, David F. D’Alessandro, former CEO of John Hancock said, “A brand is whatever the consumer thinks of when he hears your company’s name. Branding is everything…”

And everything is branding…

Notable New York ad guy, Donny Deutsch, gave this definition of branding: “Great brands present an ethos, a religion, that people bond with. They go, ‘yes, I got that. I like the way you think. We’re on the same page. Let’s go!’ ”

Which leads to another worthwhile distinction:  The difference between the noun “brand,” and the verb “branding.”

“Some companies equate branding with marketing,” says Jasper Kunde, author of Corporate Religion. “Design a sparkling new logo, run an exciting new campaign, and voila, you’re back on course. They are wrong. Branding is bigger. Much bigger.”

If a brand is a set of mental associations about a company, then BrandING is the process of helping people formulate those associations.

If advertising is “getting your name out there,” Branding is attaching something meaningful to your name.

Your brand is a promise, both emotional and rational.

Branding is a never-ending effort to conduct business in a way that will result in a better “brand”. It goes way beyond advertising or marketing communications. Because what you SAY does not carry as much weight as what you DO.

Branding is really about doing the right thing.

In The Best Of Branding, James Gregory said: “A corporate brand is the product of millions of experiences, with vendors, employees, customers, media, etc.”

If you’re doing right by all those people, your “branding” efforts will pay off in spades. On the other hand, if your company has no heart — and stands for nothing more than making money — then your branding efforts will flounder in a sea of unkept promises and unbelievable marketing hype.

Starbucks stands for something.

BNBranding Brand Insight Blog post Howard Shultz said, “we built the Starbucks brand first with our people, because we believe the best way to meet and exceed the expectations of customers was to hire and train great people. Their passion and commitment made our retail partners the best ambassadors of the brand.”

The foundation of your brand is your values and your beliefs. And at Starbucks, the operational values revolved around two things… the people and the product.

The Saturn Brand was never about the cars. It was about the state-of-the-art manufacturing plant right here in the USA, the no-haggle sales process and the dealer business model. In other words, it was about the whole operation, which really was a fresh new approach in the automotive industry.

Unfortunately, the brand behind the brand was GM.

Management guru Tom Peters says, “Branding is ultimately about nothing more and nothing less than heart. It’s about passion… What you care about. It’s about what’s inside you, your team, your division, your company.”

The trick is figuring that out. Defining your passion. Naming your brand values. Being true to yourself. And then aligning your operation accordingly. So everything you do comes from the heart.

That’s why every business owner and executive should care about branding.

Stengel did an exhaustive study on the subject and found that the leaders of the world’s greatest companies excel in these five critical areas:

  1. Discovering or rediscovering the essential core of their brand.
  2. Building the business around that core purpose.
  3. Communicating core brand values internally and externally.
  4. Delivering a customer experience that’s aligned with the essence of the brand
  5. Evaluating business progress against the core purpose of the brand.

For personalized help on your brand, and branding, give us a call: 541-815-0075.

1 branding fundamentals in the guitar guitar business

Branding Fundamentals – The ABCs of Branding are RCD

the importance of branding BNbrandingRelevance. Credibility. Differentiation. These are branding fundamentals. When you look at companies — large and small — that have become successful brands, you’ll notice strength, consistency and often superiority in those three areas.

Branding fundamentals begin with Relevance.

Brand relevance is closely related to specialization and niche marketing. Because you can’t be relevant to everyone.

My old friend Preston Thompson understood the importance of branding strategies and the need for a niche. He painstakingly crafted high-end guitars for discerning bluegrass musicians who are looking for a very specific, classic, Martin-like sound. It’s only relevant to a very narrow, niche audience.

Obviously, the Thompson Guitar brand is not relevant to those of us who don’t play the guitar.

But it’s also NOT relevant to most guitar players. NOT relevant to pop stars or young, smash-grass musicians. Not relevant to classical guitarists. Not even relevant to most blue grass guitarists.

Wisely, Preston doesn’t worry about that.

The Thompson Guitar brand IS relevant to the tiny, narrow niche of customers they’re looking for. Rather than casting a wide net, and trying to be relevant to a broad range of guitar players, they’re staying esoterically focused.

Relevant to few, but highly valued.

 

 

The more focused you are, the easier it is to maintain relevance among the prospects who matter most. Relevance is not an absolute. In fact, it’s a bit of a moving target.

Blackberry was once a highly relevant brand among young, upwardly mobile, hyper-busy professionals. Not anymore. Technological advances from Apple and Google wiped the Blackberry off the map. Such is life in the world of high tech… if you’re not innovating quickly your brand relevance will fall faster than you can say Alta Vista.

Relevance in the restaurant business is also ridiculously fleeting.  Foodies, who are the bread and butter of the trendy restaurant scene, suffer from a severe case of “been there done that” syndrome. So when something new comes along, they’re gone  and the hottest restaurant of the year gets quickly supplanted by the next great thing. The restaurants that thrive in the long run find an audience after the foodies have left the building.

The demise of Sears demonstrates a dramatic loss of relevance. There’s still a very small audience of elderly consumers who have been buying appliances and tools there for 50 years, but the brand can’t survive on that.  It’s NOT relevant to younger consumers who represent the future of retail. High school girls would rather be shot than caught shopping at Sears.

too many choices the importance of branding BNBranding Brand Insight BlogSometimes entire categories experience a dip in relevance. Like what’s happened in the soft drink industry… bubbly drinks like Coke and Pepsi are not as relevant to young consumers who have taken to Glaceau Vitamin Water, Gatoraide, SoBe, Arizona Iced Tea, Kombucha and more than 50 other alternatives.

It’s a function of choice, really. When I was growing up, we didn’t have all those choices. Just milk, Coke or Kool Aid in the summer.

The more choices there are in your category, the harder it is to maintain relevance.

It’s tough staying “on the radar” when there are so many new products, new companies, and new offerings being unveiled. How many of the 50 brands of flavored water do you think will be around ten years from now?

Being relevant equates to being meaningful. If your brand is meaningful, you’ll generate interest. People will desire it. And they’ll take action. That’s what you want: Interest. Desire. Action.

Many brands fail because they didn’t really mean anything to begin with.  Others lose their meaning over time, often due to a lack of credibility. They haven’t mastered the branding fundamentals.

Branding Fundamental #2: Credibility

Credibility begins by knowing yourself, your brand, and the core essence of your enterprise. You can’t stay true to yourself if you don’t know what you’re really about… your passion, your purpose and your promise. Write them down. That’s one of the things that all great brands have in common… They live by their brand values.

BNBranding how to choose the right message for your adsIt’s been said that branding is about promises kept. That’s how you build trust and loyalty. So don’t bullshit people about what you can do or deliver. (That’s another, very basic, branding fundamental.)

Good sales people often gloss over the realities of delivery in order to get the sale. Like the famous line from an old FedEx ad… “We can do that. Sure, we can do that! (How we gonna do that?”) Every time you over-promise and come up short, your credibility takes a hit.

Instead, set realistic expectations. And if things do go wrong, don’t be afraid to say, “yeah, we really screwed up.” And do it quickly! In this world of social media you have to move fast to stay ahead of any bad news.

So let’s assume that you know yourself well and you’ve established a trusted brand. The easiest way to screw it up is to advertise something you’re NOT. Like a personal injury lawyer claiming to be friendly and honest.

And if you really want to compound the problem, try using a celebrity of questionable credibility. That’s a double whammy! Every brand affiliation reflects on your credibility.

Often what you’ll see is advertising based on wishful thinking rather than brand realities or customer insight. The ego of the business owner clouds the message that gets out and harms the credibility of the company. Ego is also a common culprit when it comes to differentiation… CEOs and business owners start thinking they can do anything.

brand differentiation BNBrandingBranding Fundamentals: Differentiation.

The best brands take the conventional thinking of their industry and throw it on its ear, disrupting everything that came before. They discard the age-old excuse; “Yeah, but we’ve always done it this way.”

You cannot differentiate your brand by watching the rear-view mirror or by following the lead of others in your industry. Instead, try the convention-disruption model… Think about the standard operating procedures and practices of your industry – the conventional approach – and do something else.

There are three key areas where differentiation can produce some dramatic business gains:

Product/Service Differentiation

The best marketing programs begin with products designed to be different from the get-go. There are plenty of ice cream brands out there, but only one with the crazy, mixed-up flavors of “Late Night Snack.” Ben & Jerry’s continually differentiates itself with its creativity in the flavor department.

Operational Differentiation

If you have me-too products you can still differentiate yourself through operational innovation. Be more efficient, more employee-friendly, more environmentally conscious, whatever. For Walmart procurement and supply chain management was the differentiator. That’s what enables them to keep prices so low.

Business Model Differentiation

This is a good option that applies mostly to start-ups. If you can find a better business model, and prove that it works, investors will notice.  But keep in mind, consumers might not know the difference, so you still have to do other things well.

Marketing  Differentiation

In crowded markets with many similar offerings it’s often the advertising and marketing programs that push one brand to the front of the pack. Additionally, in advertising circles there are three areas where you can differentiate yourself:  Strategy, media, or creative execution.

Take AFLAC for instance… Before that obnoxious duck came along, no one even knew what supplemental insurance was. That’s creative differentiation. And no one else in that niche was running television. That’s media differentiation.

The famous “Got Milk” ad campaign utilized a disruptive new strategy for the category, as well as exceptional execution.

RCD. Relevance. Credibility. Differentiation. Most companies are lucky to get one or two out of three. The greatest brands are three for three.

Call us to find out how Relevance Credibility & Differentiation matter to your business. 541-815-0075.

WantMore on the importance of branding and branding fundamentals?

 

 

 

 

 

 

 

 

 

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

7

How to build a brand… First, own an idea.

I think all entrepreneurs should study advertising. Entrepreneurs are full of ideas, and advertising is an industry of ideas… Ideas on how to build a brand. How to build credibility and authenticity for existing brands. How to engage an audience and convert leads into sales.

It’s those big ideas — paired with exceptional execution — that builds iconic brands over time, and vaults ad agencies into the national spotlight.

The same can be said for start-ups. Entrepreneurs who start with a big idea, and then stick to it, are the ones who end up building iconic brands. They own an idea, like Zappos did for shoes or Patagonia for adventure gear, or Tesla for electric luxury cars.

how to build a brand - Maytag example by BN BrandingHere’s a good example from the archives of advertising history:

Maytag owns the idea of worry-free appliances. For more than 30 years their advertising has brilliantly communicated the idea of dependability with the lonely Maytag repairman who never has anything to do.
Now he even has an apprentice. The Leo Burnett Agency introduced a strapping new version of Maytag repairman… a side-kick who can talk about technological advancements and appeal to younger women.
The Maytag repairman character is so iconic Chevy actually used him in a television spot touting the Impala’s reliability. Maytag owns the idea. Chevy’s just borrowing it.
Maytag’s core brand idea helps segment the market and differentiate them from the competition. Nobody else in that category will try to claim the idea of “reliability.” Won’t work because everyone knows that Maytag = dependability.

Google knows how to build a brand. They own the idea of online search. So much so, it’s become a verb. “Google it.” It’s the world at your fingertips.

Campbell’s owns the idea of “comfort food.” That brand is not about flavor, it’s about the rainy day when your kids are home for lunch and you sit down for a bowl of soup and grilled cheese sandwiches. Campbell’s warms, comforts, nourishes, takes you back in time and puts a smile on your face.

For only about one dollar.

Volvo owns the idea of safety. That’s their clearly perceived position in the automotive market.

own an idea BNBrandingEven though driving an automobile is inherently risky, people believe they are safe in a Volvo. And that belief feeds the folklore that sustains that idea and Volvo’s brand image.

Even though Volvo models have all the glamorous features of a luxury brand, they’ll never be seen as luxury cars. Just safe cars.

Funny story about Volvo shopping… Some years ago I seriously considered buying a Volvo SUV for my family. I did the research and went to the local lot for a test drive. But the salesman blew it. He was so adamant about the brand’s safety record, he tried to convince me that Volvo actually used Swedish convicts as live test dummies. True story, he claimed. That’s how Volvo developed such a safe car… by crashing them with convicts at the wheel.

Needless to say, Volvo’s reputation for safety and the car’s luxurious ride couldn’t trump the salesman’s idiocy. I bought an Audi.

Who owns the idea of “fast food?”

McDonald’s, of course. But when people began to realize that fast food wasn’t so good nutritionally, Subway had their own idea… “Healthy Fast Food.”  It was healthier than McDonalds, and Jerod proved it by losing like a thousand pounds while eating Subway Sandwiches.

That simple idea has propelled Subway to #1 in the fast food category. There are 44,800 subway Subway stores to 36,500 McDonald’s stores.

Jimmy Johns owns the idea of fast sandwich deliveryNow Jimmy John’s owns the idea of FAST sandwiches. Not fast food, or sandwiches like Subway, but sandwiches delivered quickly, wherever you may be.

That’s a good strategy of differentiation, especially because their sandwiches aren’t all that great. If they stick with the idea, and execute the idea religiously by actually delivering every sandwich faster than anyone expects, they’ll have a winning business formula.

It’s a core brand concept that’s easily demonstrable in advertising.

And that’s particularly important when it’s a category of parity.  The sandwiches at Quiznos, Tomo’s, Jimmy John’s and Subway are all pretty much the same, so the advertising idea becomes even more important.

Insurance in another such category. It’s a fairly even playing field in a low-involvement category. (Let’s face it, dealing with insurance is about as much fun as going to the dentist.)

Allstate owns the idea of mayhem. In their current advertising campaign the agency  put a face on mayhem, and gave him a smart-ass personality. Everybody knows somebody like that, you just hope your daughter doesn’t date the guy

State Farm has a long-running slogan, “like a good neighbor.”  Unfortunately, neither the advertising nor the customer service support that idea.

Geico saturates the airwaves with humorous advertising and outspends everyone in the insurance category. Thanks to an annual budget of $500 million a year the Geico Gecko and the cavemen have become fixtures in American pop culture. But the message is all over the place. There’s no core brand idea that anyone can grasp.

Guess who owns the idea of sparkling white teeth?  It’s not Colgate. Not Crest. Not a toothpaste, at all.  It’s Orbit chewing gum, a fairly new brand from the master marketers at Wrigleys.

The Orbit girl “cleaning up dirty mouths” campaign helped them capture the #1 spot in the chewing gum market.

(I think Orbit copied the Progressive Insurance advertising. Progressive is the sparkling white insurance brand, for whatever that’s worth.)

Coming up with a core brand concept is hard work. You really have to dig. And think. And explore.

Most of the good ideas have already been done, or can’t be owned authentically. That’s the trick… finding a conceptual framework that honestly fits with your product or service offering.  (BNBranding can help you with that.)

Many big brands don’t own an idea at all.

JCPenny, or JCP as they’d like us to say, doesn’t own an idea. They’re trying desperately to be younger, cooler and more hip than they used to be, but the name change and the slick new execution of their print advertising doesn’t make up for the lack of a relevant idea. They’re closing stores by the hundreds, and are destined to become yet another retail dinosaur.

Whether you’re selling insurance or chewing gum, building a brand begins with a simple idea.

Anybody can borrow some money, hang up a shingle and start their own business. But the companies that last — the ones that become iconic brands — almost always start with a clearly defined, highly demonstrable idea that goes beyond just the product or service.

Do you need ideas? Need help with your brand messaging? Get started right away. Click here. 

Want to learn more about how to build a brand? Try this post.

 

how to build a brand by BN Branding

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.

positioning strategy BNBranding

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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perception vs reality in natural foods marketing by BNBranding

Secondary Reality (Alternative facts in natural foods marketing)

BNBranding Bend, Oregon advertising agency“Those marketing guys aren’t dealing in reality.”

I’ve heard that one before from sales guys, engineers, CFOs, CEOs and COOs.  To which I say, “Damn right.”

If the marketing team dealt only in reality the operations team wouldn’t have an operation. The finance guys wouldn’t have profits to count. The Human Resources department wouldn’t need more resources. And there would be no iconic brands.

perception vs reality in natural foods marketing by BNBrandingBecause perception IS reality. Especially when it comes to natural foods marketing.

A few years ago in a piece on brand credibility I said, “The best story tellers — novelists, moviemakers,  comedians, preachers — can get audiences to suspend disbelief and go along with plots that are a bit far-fetched.

By using vivid, believable details and dialog they draw us into their stories and “sell” us on characters that are bigger than life and settings that are out of this world. 

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

There’s a secondary reality in every market segment. Consumers within that segment share a powerful belief system that is not based on facts at all. It’s what psychologists call Motivated Reasoning.

“Motivated reasoning is a pervasive tendency of human cognition,” says Peter Ditto, PhD, a social psychologist at the University of California, Irvine, who studies how motivation, emotion and intuition influence judgment. “People are capable of being thoughtful and rational, but our wishes, hopes, fears and motivations often tip the scales to make us more likely to accept something as true if it supports what we want to believe.”

We all have a natural tendency to cherry pick the facts. We tune in to the information that fits our existing beliefs, and blow-off everything else.

Politics and our modern media landscape seems to be amplifying the retreat from facts.

“These are wonderful times for motivated reasoners,” said Matthew Hornsey, PhD, a professor of psychology at the University of Queensland. “The internet provides an almost infinite number of sources of information from which to choose your preferred reality. There’s an echo chamber out there for everyone.”

 

 

tips for new logo design by BNBrandingIn natural foods marketing there’s a powerful, secondary reality that says if it’s in this category, then it must be good for me. That’s simply not true. The reality is that many so-called “natural” foods have no health benefits whatsoever.

Doesn’t matter. Perception is reality.

The tribe of people who who are drinking the natural, fortified kool-aid of the health food industry make certain assumptions and hold a particular set of beliefs that the rest of the world does not share. They are highly motivated to find products that fit those beliefs.

So you don’t have to present scientific proof that a product is actually healthy. You just have to work with the existing perception, and present the alternative fact that your product is healthier than the traditional choice.

Being relatively better can translate into big bucks.

Look at how Vitamin Water went from startup to $4.1 billion acquisition in just 11 years… In reality, the product is nothing more than watered down Kool-aid for adults. And a 20 oz Vitamin Water has almost as much sugar as a 12 oz Coke.

But that reality doesn’t matter because the product name and the packaging position it as a healthier alternative to Coke or Pepsi. That was the immediate, accepted perception…  It’s less bad for you than the traditional carbonated beverage. In grocery stores it isn’t even on the same aisle as the soft drinks. It’s sold next to the bottled water.

Drinking this relatively healthy beverage helps consumers rationalized their consumption of other, unhealthy foods. It’s like taking a one-a-day vitamin and it still provides that refreshing sweetness that people crave.

Plus, the launch of Vitamin Water was timed perfectly to leverage two emerging consumer trends: The backlash against all the high fructose corn syrup in sodas and the need to stay hydrated. Drink more water. Plus, it leveraged the commonly-held truth that we need more vitamins in our diets.

Seth Godin refers to these as “truth” stories. They’re true within the alternate reality of the market segment.

For example… Those natural potato chips that I crave everyday for lunch… probably not good for me. But I believe they’re healthier than the traditional, mainstream choice – Lays. So my own motivated reasoning tells me to buy the natural alternative.

I know it’s not like eating broccoli, but it’s incrementally healthier than what I used to eat, and that’s okay. That’s what fits into my own personal reality. That’s my truth.

So if you’re making “healthy” salty snack foods, remember… You can’t compete with broccoli on healthiness. But you can compete with Lays.

Here are some other examples of alternative facts from the health food industry:

Baked is better than fried. Doesn’t matter if those natural cheese puffs are loaded with fat, the mainstream consumer will buy them as long as they’re not fried. And health foods are moving more and more into the mainstream.

Healthy fats are okay.  Forget about the old adage that says “fats make you fat.” The pendulum is swinging the other direction right now, and many companies are using the term “healthy fats” in their product claims. The FDA’s not buying it, and it’s highly debatable in the scientific community, but that doesn’t matter. Consumers are buying it.  Just look at the sales of coconut oil.

natural foods marketing on the brand insight blog by BNBranding

XYZ secret ingredient is the best thing ever.  Health-minded consumers are quick to jump on whatever ingredient is trendy…. kale, acai, turmeric, ginger, apple cider vinegar, duck fat, coconut water, Aquamin, prebiotoics, probiotics, whatever.

Beware… Those trends are fickle. All it takes is one high-profile “scientific” study to discredit your main ingredient and doom your entire product line. You need more than just superfood ingredients.

You also need a story that will ring true.

Here’s the real truth behind ingredients for the supplements industry: Companies that market those ingredients routinely accept anything more than 50% success rate in initial clinical trials. So in other words… even if the ingredient is only effective half the time, it’s still commercially viable.

Are you kidding me? Doesn’t matter. Consumers are swallowing it. Perception IS reality.

In natural foods marketing it’s not just about ingredients – even the best ingredients cannot drive sales by themselves. It’s not about what the product is, it’s what the product could be in the mind of the person who lives in the same, alternative reality. It’s entirely aspirational.

Advertising legend George Lois put it quite well; “Great advertising campaigns should portray what we feel in our hearts the product can grow to become. The imagery should be ahead of the product, not in a way that assails credulity, but in a sensitive way that inspires belief in the product’s benefits and instills a greater sense of purpose to those who produce and sell it.”

Credulity is rampant in natural foods marketing. In every category.

Michael Proctor, a colleague of mine who’s been in the health food industry for 30 years, says you have to dance around the side of things.

“The messages are getting more mainstream. The benchmarks and buzzwords keep changing, so it’s like a crab, always moving sideways. But you have to know what the prevailing reality is, in order to skirt around it and find the reality that you resonate with.”

Know the reality. Tap into the prevmarketing supplements Brand Insight Blogailing perception.

Getting your messaging right is not an easy task. The good news is, most of your competitors are probably missing it, which means you have room to move in and effectively control the dialog.supplements marketing BNBranding

Is “25 billion probiotics” an effective claim to make? 50 billion? 100 billion? 200 billion? What’s the number?

Probably none marketing supplements and natural foods marketingof the above. Those companies are getting caught up in a numbers race and are missing the more relevant point.

Probably time to move like a crab and find another story to tell.

For a little more help in natural foods marketing, give us a call at 541-815-0075 or visit our website.

Go here for more on truth in marketing,

Keen branding

 

 

 

 

5

Sorting through the endless “marketing opportunities”

BNBranding logoThe marketing landscape isn’t really a landscape anymore. It’s more like a fast moving landslide, snapping trees and engulfing unsuspecting business owners up to their ears in muck.

Most clients I know can’t possibly wade through the complex maze of choices.

They are wearing so many different hats, they can’t begin to sort out all the “marketing opportunities,” much less make sound strategic decisions regarding each one.

the modern marketing landscape BN BrandingQuite frankly, it’s silly to even try.

There’s affiliate marketing, agile marketing, account-based marketing, advertising, analytics, ambush marketing, B to B, B to C, B to P, behavioral marketing, blackhat marketing, branding, blog marketing and buzz marketing.

And that’s just the first two letters of the alphabet.

It’s nuts. This is one area where delegation and outsourcing are the only paths to sanity.

Even the biggest brands in the world, with massive marketing departments, can’t make sense of it all. Bob Liodice, President and CEO of the Association of National Advertisers summed it up at a recent conference in Orlando:

“Yes, there’s been substantial technological progress. But no one can understand it. ”

 

 

Unless you have a background in at least one major marketing discipline, or unless you have time to devote 30 hours a week learning this stuff, your business will be better off if you stay focused on what you know, and turn to a savvy marketing pro who can dodge the landslide altogether.

I’ve seen what happens when business owners try to forego that marketing help, and try to tackle too many tactics…

• Sloppy, ineffective websites go live, simply because the owner has more important things to do.

• Value propositions go undefined and miscommunicated, both to the sales staff and to end users. Ask 100 small business owners “what’s your value proposition” and at least half of them will be stumped.

• Trade ads get printed in consumer magazines because the “marketing person”/executive assistant doesn’t know the difference.

• E-commerce sales copy on umpteen online retail sites is unproofed, uninspiring and untrue, leading to lackluster E-commerce sales.

• High-dollar digital campaigns directed to teenage gamers pop up on Our Time – a dating site for people over 50. Re-targeting gone wrong!

• Marketing tactics and strategy get completely out of alignment.

• A company that provides private jet services spends hundreds of thousands of dollars on schlocky local TV ads. The phones ring, but no one buys. Big surprise. They’re shouting to the wrong audience entirely –  one that can’t possibly afford the product.

• Social media posts go viral – but they’re so off brand and out of left field, no one has any idea where they even came from.

Yep, the good, ol’ American do-it-yourself mentality dooms many marketing efforts, and even ensures the failure of thousands of businesses every year. For every new tactic, and every variety of marketing, there are a hundred different ways to screw things up.

So what are you supposed to do? How can business owners find the right marketing tool for the job and quit wasting time on marketing opportunities that go nowhere?

First of all, you need to have a general grasp of the complex marketing landscape.

Reading this blog and other credible sources is a good start. You need to know enough to manage the process. It’s no different than managing lawyers or accountants or programmers… you can’t be totally in the dark about what they’re doing. But beware of the internet… there’s as much mis-information and fake news as there is good advice. Always check the source.

Second, find someone you trust implicitly to help you wade through all the marketing clutter.

There are thousands of capable consultants, agencies, firms and freelancers who would love to help you. They will pour heart and soul into your marketing efforts, if you just treat them fairly and pay them on time and accept their outside perspective as a positive.

It’s easy to say, “yeah, well you don’ t really understand my business.”  They may not know it as well as you do, but what we do know is marketing, That’s what you’re hiring us for. We can learn the ins and outs of your operation as we go, just as you can learn the basics of marketing and branding.

Third, set clear goals, expectations and metrics.

Demand some accountability. The last thing you need is someone running around spending all your marketing dollars with no clear direction.

Balance your marketing strategy and tactics with BNBrandingYou need to balance your strategy and tactics and possibly even pull all the pieces together with marketing automation tools.

So start with strategy, not tactics.

Social Media marketing is not a strategy.

Digital advertising  is not a strategy.

Marketing automation is not a strategy.

If you don’t know the difference between strategy and tactics, all the more reason to  outsource your marketing.

Don’t expect a specialist in one little marketing niche to understand the entire marketing landscape. It may take one person to set the strategy and another group to execute all the tactics. After all, there are a lot of them.

I have a client who has spent 10 years studying marketing, just so he could “talk intelligently” with people like me.

He has read hundreds of marketing books, attended conferences, and traveled the country to hear the big-name gurus speak. He’s learned a lot, and yet he freely admits he could never do what I do. Because learning it from a book and actually doing the work successfully, over and over again, are two different things entirely.

But now he knows enough to manage the process. And he has someone he trusts to help him choose his opportunities wisely, and maximize every one.

Here’s more on how to find the right person to manage the complex marketing landscape.

If you want help navigating it all, call BNBranding. 541-815-0075.

 

12 4 ps of marketing brand insight blog

The 4 Ps of Marketing – Plus one for Ecommerce

brand credibility from branding expertsEvery year, thousands of E-commerce startups are launched with nothing more than a whim and a prayer and website. Most will fail because they ignore the 4 Ps of marketing and launch with just a product and a place – an online store.

But a few will experience meteoric success and become iconic brands. (Think Zappos)

What’s the difference? Why do some e-commerce start-ups succeed while so many others come and go faster than a bad Chinese restaurant?

Often it’s for the same reason that traditional, brick and mortar businesses fail: They don’t follow a disciplined process of brand building, and they ignore the 4 Ps of marketing.

Many people in the on-line world seem to think you should abandon everything that was taught in Marketing 101 simply because they have a relatively new distribution method. But “Place” is only one of the 4Ps.

You don’t have to reinvent the wheel just because you’re only doing business online. You just have to take a little different route.

4 ps of marketing brand insight blog

Take, for example, the traditional 4Ps of marketing: Product, Price, Place (distribution)  & Promotion. It’s an old-school notion that’s just as applicable today as it was in the heyday of Madison Avenue. However, there’s at least one new P you should also seriously consider.

But before we get to that, let’s look at the originals that make up the 4 Ps of Marketing. Consider it a handy refresher:

1. The first P of marketing: Product

There’s an old saying in advertising circles… “nothing kills a crummy product faster than great advertising.” These days, it happens in hyper time.

Blogs, tweets, and consumer-generated reviews doom bad products faster than you can type “#bankrupt.” So the first P is more important than it’s ever been. If you’re starting an ecommerce store, you better find some good products to carry.

Thirty years ago if you had pockets deep enough for a sustained mass media campaign and a good creative team, you could you could go to market with a mediocre, me-too product or service.

Not anymore. These days your product line-up has to be among the best in class. Because people expect more. They’re looking for something compelling — and genuinely different — that’s built in to your core product or service. In other words, the marketing needs to be baked right into the product.

Seth Godin Purple Cow BookSeth Godin talks about a Purple Cow or a “Free prize inside.”

Tom Peters talks about the pursuit of WOW!

Whatever. The fact is, Product still is, and always will be, the single most important P of the 4 Ps of Marketing. Doesn’t matter if your business is providing the latest, greatest mobile web technology, or an old-fashioned widget, Product comes first and all the other P’s fall in line from there.

2. The second P of Marketing: Price.

I’m no expert on pricing, but I know this: Smart pricing strategies are more important than ever. Here are just a few of the reasons:

• The internet enables us to make more intelligent purchases than we did 15 years ago. We’re doing more research and minimizing “bad”purchases and buyer’s remorse. We’re still willing to pay a little more for premium brands, but we’re not going to get gouged. And we’re much more likely to price shop, since it doesn’t involve driving all over town.

 

• In the world of e-Business you can’t just apply the old “cost-plus” pricing model. It’s way more complicated than that. Even though internet-based businesses tend to have high margins you have to work really hard to develop sustainable revenue streams. In order to build a loyal following and, ultimately, generate revenues, many companies don’t charge anything.

• It’s harder than ever to compete on price. Unless you’re the size of Amazon or Walmart, forget about it! There’s always some other website waiting to undercut your price. You might be the low price leader in your little town, but now people are searching the world for a measly little discount.

So you have to go back to the first P.

You have to devise a product or service that has a perceived value that’s higher than your competitor’s, but a sale price that’s equal or lower.

Apple has adamantly stuck to their premium pricing strategy. It keeps them honest. It’s one of their brand fundamentals. They know they have to keep launching products that are superior in design and function. They understand price elasticity and the value of their brand.

The Third P of Marketing: Place.

The traditional third “P” refers to distribution channels and the placement of your product in stores. Basically, where and how you sell your product. This is still one of the most fundamental elements of any solid business plan.

Look at Costco… They said, we’re a wholesaler, but we’re going to open our warehouses to the public.

That’s a big idea. A purple cow based on the 3rd P.

Even though you may be selling your product strictly over the internet, Place is still critically important. In fact, you could argue that the internet, as a distribution channel, has actually added complexity to the decision…

Will you sell on Amazon? Use Amazon fulfillment? Start an affiliate program and let other web merchants sell your products? Will you warehouse some products, or drop-ship everything? Sell to specialty brick & mortar stores at wholesale? Thanks to the internet, there are all sorts of possibilities.

One thing’s for sure, when your website is your only storefront as well as your #1 marketing tool, you need to make sure it’s absolutely fantastic on every level. 

Messaging. Content. Ease of use. Overall design. Product presentation. Back-end functionality. It’s all important.

the 4 Ps of marketing, plus one for Ecommerce - BN BrandingThe 4th P: Promotion.

Everyone understands this one… it’s how you get noticed, seen, and chosen.

Historically, the fourth P revolved around mass media advertising. Sure, there were other elements such as sales promotions, telemarketing, PR and direct response, but advertising was the heart of it. And many businesspeople equated advertising with marketing.

These days, a lot of people seem to think social media is synonymous with marketing.

But social media is just another promotional marketing tactic… Just another way to spread the word about your product or service. There are dozens of other tactics you should consider once you’ve devised a clear brand strategy.

Insight first, then execution. Strategy then tactics. One without the other is like a Ferrari without a throttle.

Once again, the internet complicates matters… Where there used to be just four or five choices, you now have dozens… Content marketing, You Tube videos, paid search, Facebook posts, Twitter, Snapchat and a hundred other online options complicate the tactical marketing mix. The marketing landscape isn’t so much a landscape these days, as it is a landslide. Most business owners are overwhelmed by all the “marketing opportunities” out there.

And don’t forget packaging, which has always been lumped into this category. If you’re doing business exclusively online, your ecommerce website is, essentially, the packaging.

But here’s the good news about the 4th P: Ecommerce offers advertisers what they’ve always wanted: definitive, trackable ROI on their investment. Tracking those click-throughs to conversion allows you to hone in on the message that’s most persuasive and eliminate the promotional efforts that don’t pull.

Many great brands have been built, just in the last 10 years, on nothing but social media campaigns and word-of-mouth advertising driven by micro-influencers.  Laird Superfoods, Warby Parker, and the golf brand Sub 70, to name a few. And it doesn’t take a huge budget or Kardashian-level connections to make it happen.

So that’s a brief on the traditional 4P’s of marketing. Think you can afford to ignore any of them?

What about the new one I mentioned?

The biggest complaint against the original 4 P’s was this: They’re designed from the top down, around what the company wants, rather than what the consumer really needs. They’re too inwardly focused.

So here’s the new 5th P: Perspective. The consumer’s perspective, to be precise.

Companies that thrive today are the ones that embrace the perspective of the consumer. Not the 1980’s idea of the consumer as one, massive heard of lemmings. We’re talking about individuals. Real people who are involved and engaged with your brand.

How do you do that?

It starts with market research in its most basic, fundamental form. It’s what Tom Peters calls “strategic listening,” and he contends it’s the most important job of any C-level exec or business owner and it’s a critical first step in the branding process.

Strategic listening requires that you set aside your existing perspective and listen without prejudice.

Some people simply can’t do

it themselves… they’re too far inside the bottle to see clearly. So get some professional help. Talk to your front-line employees, customers, non-customers, competitor’s customers. Do it on the ph

one. In focus groups. In on-line chats. On Twitter or Facebook or Instagram. Doesn’t matter. Just do it.

The point is, you’ll come away with a new perspective about the genuine wants and needs of your potential customers. And that insight is what weaves all the other Ps together. It’s a great way to jump start your branding effort – with BNBranding.

It should be the starting point, not an afterthought.

You may have to change your product or revise your service. You might have to rethink your pricing structure, shift your promotional strategy or adopt an entirely new business model, but it’ll be worth it.

Because then you’ll have a business built on a foundation of solid marketing fundamentals… five P’s. Put them all together, and sustain the effort, and you’ll have one big, iconic B:  A Brand.

Want more on the 4 Ps of marketing and the fundamentals of branding: Try this post.

Need help getting that new perspective you need.  Talk direct with a branding expert who can give you a fair and affordable assessment of where your are and what you need.  541-815-0075.  See some of the Ecommerce sites we’ve worked on.

82 marketin strategy vs tactics BNBranding

The difference between marketing strategy and tactics.

BNBranding logoI’m appalled. A successful marketing guy asked me a question recently — a real no-brainer — which led me to believe he didn’t know the difference between marketing strategy and tactics.

How can that be? He’s held several high-paying marketing positions. He has an MBA. He’s gotta know this stuff.

So I started doing some research online and I’ve found the problem: The internet!

marketin strategy vs tactics BNBrandingJust about every day there’s another misleading online article about marketing strategy and tactics. There’s more misinformation than information out there. More nonsense than common sense.

For instance, I ran across one article that listed “search engines” as a marketing strategy and said “long-term strategies such as giving away freebies will continue to pay off years down the road.”

Freebies are NOT a strategy. Search engines are NOT a strategy. Digital is NOT a strategy.

Just the other day, one of the biggest gurus of digital marketing published a post about “marketing strategy” that was flat-out wrong. It was about media buying — specifically, choosing Facebook over Television advertising.

That’s not Marketing Strategy, that’s tactical media buying.  That’s Step 5 in the branding process, not the beginning.

This isn’t just a matter of semantics, it’s negligence. Advice like that would never get past the editors of a brand-name business magazine, but you can find it on-line. All over the place.

 

 

 

The easiest way to clarify the difference between marketing strategy and tactics is to go to the source…

marketing tactics vs strategy

I’m sorry if the war analogy doesn’t appeal to you, but that’s where these terms came from, some 3,000 years ago. Sun Tzu, and all that.

Here’s how it breaks down: Goals first. Then strategy. Then tactics.

Goal: Win the war.

Strategy: “Divide and conquer.”

Tactics:

CIA spies gather intelligence to determine where the enemy is.

Navy Seals knock out enemy communications. Blow up bridges. Cut off supply routes.

Paratroopers secure the airports.

Drone attacks take out the enemy leadership’s command and control centers.

Armored Divisions and tank battalions race in from different directions and divide the opposing army’s forces.

Finally, an overwhelming force of infantry invade leading to the nitty gritty tactic of hand-to-hand combat.

 

Here’s another analogy from the world of reality TV:  marketing strategy vs tactics Brand Insight Blog

Let’s say you’re in a survival situation, similar to what the contestants face on “Alone.”

The goal is  simple… just find enough food to feed yourself for approximately 70 days, and be the last one standing. Basically, don’t starve to death.

Possible strategies are:

• Hunting for mice, rabbits and other small game. Plentiful, but small pay-off.

• Hunting for big game. Get all the food you need in one epic kill.

• Foraging. But will the vegetarian diet sustain you?

• Fishing. High protein if you can catch it.

• Preserving energy so you don’t need to hunt for much food at all.

 

So you have to do the research. Scout the land. Determine which strategy provides the best possible chance of survival.

Let’s say you decide that fishing is the best strategy. Then you need a tactical plan… where to fish. What to use for bait. What type of fishing gear. What time of day. How to prepare and preserve the fish. These tactical realities often play a major role in which strategy you choose.

 

A marketing strategy is an idea… A conceptualization of how the goal could be achieved.

Like “Divide and Conquer.” Another possible war strategy would be “Nuke ‘Em.” (They call them Strategic Nuclear Weapons because they pretty much eliminate the need for any further battlefield tactics.)

In WWII, the generals spent more than six months mapping out the strategy to win the war in Europe before D-Day. They diagnosed the problem, researched the enemy,  pinpointed weaknesses and literally mapped out a plan of attack. Much of that strategic debate focused on what NOT to do… Where NOT to invade. What battlefields to avoid.

Here’s an example of good marketing strategy – from Under Armour.

A marketing tactic is an action you take to execute the designated strategy.

Strategic thinking. Tactical acting.

But let’s get off the battlefield and look at a successful brand. In business, great strategies are built on BIG ideas. And BIG ideas usually stem from some little nugget of consumer insight.

Back in the 70’s, executives at Church & Dwight Inc. noticed that sales of their popular Arm & Hammer baking soda were slipping. The market research showed that the loyal moms and grandmas who had been buying Arm & Hammer all their lives weren’t baking as much as they used to. So baking soda as a baking ingredient was never going to get Arm & Hammer the growth they needed.

classic marketing strategy and tactics on the Brand Insight Blog

Business Goal:  Turn the tide and increase Baking Soda sales.

Strategy: Devise new reasons people to use baking soda. 

They had to expand their customer base beyond avid bakers. Someone had the idea to sell Arm & Hammer as a deodorizer for the fridge. That’s a big, strategic idea that led Arm & Hammer in a completely different direction. It was a common household practice, but Arm & Hammer had never been marketed their product that way.

Without changing the product one bit, they were able to open up a whole new vertical market.

They’re now marketing a whole line of environmentally friendly cleaning products. Every current Arm & Hammer product, from toothpaste to cat litter, originated from that strategy of finding new ways to use baking soda. And in the process, an old-fashioned brand has managed to stay relevant.

Tactics: All the traditional marketing tactics have been employed… TV advertising. Magazine ads. Digital advertising. Search engine marketing. Content marketing. Retail promotions. And a very useful website dedicated to all the various applications of Arm & Hammer Baking Soda.

The combination of a big-idea strategy, and plenty of supporting tactics allowed Arm & Hammer to exceed every growth projection.

 

 

All great marketing strategies share these common traits:

• Thorough understanding of the brand’s status and story. Arm & Hammer has a strong heritage that dates back to the 1860’s. That orange box with the red Arm & Hammer logo is instantly recognizable, and stands for much more than just generic sodium bicarbonate. It’s iconic.

 

• A realistic assessment of the market situation and product’s strengths & weaknesses. Market research proved what Arm & Hammer executives suspected… that people don’t bake as much as they used to. But it also showed that people were using their baking soda for all kinds of things besides baking. That was the insight that drove the strategy.

• A clear picture of the competition. Arm & Hammer has always been the undisputed market leader in the category. However, when they decided to introduce toothpaste and laundry detergent, the competition became

balance your marketing strategy and tactics with BNBranding

fierce. Arm & Hammer’s long-standing leadership position in one vertical market gave them a fighting chance against Procter & Gamble.

• Intimate knowledge of the consumer and the market. The shift away from the traditional American homemaker directly affected baking soda sales. Church & Dwight kept up with the trends, and even led the charge on environmental issues.

• A grasp of the big-picture business implications. Good brand strategies reach way beyond the marketing department. When you have a big idea, execution of the strategy will inevitably involve operations, R&D, HR, finance and every other business discipline.

A great strategy does not depend on brilliant tactics for success. If the idea is strong enough, you can get by with mediocre tactical execution. (Although I wouldn’t recommend tactical short cuts.)

However, even the best tactics can’t compensate for a lousy strategy.

You can waste a lot of money on marketing tactics if there’s no cohesive strategy involved. Some people confuse marketing strategy with marketing objectives. They are not synonymous. Here are a few examples of “marketing strategies” from seemingly credible on-line sources:

Marketing strategy and tactics - the branding process at BNBranding

The top three circles represent strategy. All the activities in the blue circles are tactics. You can’t do it all yourself. Learn more about our proven branding process. 

“Create awareness.” “Overcome objections.” “Boost consumer confidence.” “Refresh the brand.” “Turnkey a multiplatform communications program.”

That’s just marketing industry jargon.

Those are NOT strategies, they’re goals. (And not even very good goals.) Remember, it’s not a strategy unless there’s an idea behind it.

Any number of strategies can be used to achieve a business goal. In fact, it often takes more than one strategy to achieve a lofty goal, and each strategy involves its own unique tactical plan.

Unfortunately, a lot of marketing managers simply throw together a list of the tactics they’ve always used, and call it a strategy.

If you’re still wondering about the difference between marketing strategy and tactics, try the “what-if” test…

At Dominoes, someone said, “Hey, what if we guaranteed 30-minute delivery?” Dominoes couldn’t compete on product quality or price, but they could compete on speedy delivery.

So a strategy was born.

After that, their entire operation revolved around the promise of 30-minute delivery. They built a hell of a strategy around a simple, tactical idea.  That strategy worked well for more than 20 years until a lawsuit forced them to abandon it.  Now Jimmy John’s owns the “Super fast delivery” niche in the fast food industry.

At Arm & Hammer someone asked, “What if we could come up with a bunch of new uses for baking soda?”  Presenting people with entirely new ways to use your product is a  good marketing strategy.

On the other hand, “What if we do search engines?” doesn’t make sense. Must be a tactic.

“What if we increase market share?”  There’s no idea in that, so it must be a goal.

What if we could screen all web content for factual errors and eliminate some of the conflicting information you find.  Wouldn’t that be nice?

The fact is, even the sharpest marketing people need help sometimes. Even the most savvy entrepreneurs run into roadblocks on a regular basis. They crash and burn, pick up the pieces and keep on going!

BNBranding can help you navigate the world of marketing and take your business to the next level. We have a disciplined  branding process that produces a unique strategy that will differentiate you from all your competitors. And then we help you execute that strategy it in creative new ways.

It starts with an affordable test drive assessment of your current marketing efforts. We’d be happy to do that for you. It’s a simple, no-risk assessment that will point the way forward. No matter where you’re starting.

 

 

 

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