Archive for December, 2008

When brands become the butt of comedians jokes.

Tuesday, December 30th, 2008

Unless your brand wants to become the butt of comedians jokes , make sure that you deliver on your promises. The pizza industry is notorious for adding new toppings, crusts, shapes you name it. These tactics highlight just how far a commodity product can be differentiated. Without a doubt some pizzas are better than others, the challenge is how do you communicate this credibly.
Regardless of how loud the advertisements shout (similar to yelling car dealers) one needs to take into account that consumers are not stupid.
This skit emphasizes the extreme product features some brands would have you believe are really possible;

The next time your brand launches a new product, flavor or variation, remember you can fool a few people some of the time, but not everyone all the time. Honest communication and consistency are two of the most essential ingredients for building sustainable brand loyalty.

Does your customer have computer emotions?

Tuesday, December 16th, 2008

Computers and technology are essential elements of modern day living. We have become so dependent one finds it hard to imagine life without it. Consider Generation Y , born into the technical revolution era, and never experiencing life without digital interactivity.
Here are a few facts about Gen Y
Aged 12 –31

Approximately 80 Million, that equates to nearly 25% of the US population, twice the size of Generation X.

Just about all of them own a computer, cell phone and ipod. In fact undergraduate students at Georgia Tech have been mandated since 1997 to own a computer. Technology is no longer an option, but a prerequisite. The challenge facing many marketers is that they communicate with customers as if they are computers.

Financial institutions are notorious for relying on statistical modeling and consumer profiling. While these methodologies appear to be rational (at least from an accountants perspective),they offered little assistance to the recent global financial meltdown which was totally out of control. This frenzy was rocket fuelled with technology, trades and swaps changing hands in nano-seconds without the first consideration for common sense and judgment.

If companies treat their customers like computers, here’s what type of reaction you can expect happens when “Computer say No”

Frankly you run the risk of losing them forever. While I am a great advocate for change and advancement, I also realize that technology in and of itself cannot answer the marketer’s strategy dilemma. So the next time you invest in technology make sure your staff understand it’s just a tool, no matter how smart and efficient it can operate, people are your greatest asset, unlike a computer they have passion and care, traits technology has not yet discovered. When combined effectively you can now begin to build a “Killer App”

Watch out for the corporate neppits.

Monday, December 1st, 2008

Many of the world’s  largest brands (by market capitalization) were born less than 10yrs ago , for example Google, Ebay, Amazon to name a few. Traditionalists are astounded at the rapid growth and customer adoption in such a short time span. They frequently question “how did they do that?” One fundamental principle that all these companies adhere to is empowering  their  customers with interactive tools that enable them to make buying decisions based on their terms, as opposed to controlling choice. This involves a significant investment in technology and innovation, evidently it has proven to produce significant returns for those who have the courage to explore.

So what happens when established marketers avoid innovation to protect their heritage . Although brand heritage can be great asset, it can also become an “Achilles  heel” if it hinders change. What does heritage signify. It signifies that the brand has stood the test of time, and succeeded. Many obstacles have been overcome including   wars, depressions, financial disasters, to mention a  few challenges  a brand may face. So why do legacy brands fail?  History has consistently shown that the management of a company is like the rudder of a ship, although its size is small in comparison to the firm, the direction it points , affects the direction of the whole vessel. Style  and culture influence  the stability of a good rudder, there are times when emergency measures are needed to avoid danger, sharp turns may upset some of the crew, however the most successful teams need to be prepared to venture into unchartered waters.

When challenged by new innovative  products and services, arrogant marketers tend to discount these newcomers as farcical. The foundation of their belief system looks to the past for answers and not the future. Regardless of whether it be the fear of change, or lack of knowledge, dismissing change is the favored choice, because status quo is king in their comfortable world. Many legacy brands fuel the appetite of nepotism ,why?, because numerous corporate executives have their inner  network spoon feeding  whatever  they want to hear. Unfortunately many great companies have failed, not because of defective products or inferior quality, but by defiant management.  The children of nepotism are “neppits” , savvy competitors drive “neppits”  to defiance (an excellent strategy for confusion) ,understanding  in advance the destructive  path it will lead  them down. Previous success does not guarantee future success in the post modern world.  No longer will deep pockets alone solve the problem. Instead marketers need to consider contrarian propositions that may refute their current business model. While this may be emotionally painful in the short term, shrewd management should be attentive to different views and consider numerous contradictory tactics, if indeed they are to holistically plan for the future. Proctor and Gamble is one of the most innovative manufacturers in the world, even when commanding the number 1 or 2 position in any market they constantly innovate and research potential new products that could cannibalize their existing brands. The philosophy behind this practice is that it’s better to understand what could destroy you, and potentially own it before it owns or destroys you.

Here’s how Woolworths’s a household name in  retailing, was recently felled after 100yrs . Let’s face it none of us like change, especially when it disrupts our comfort and indulgent habits. Consequently we avoid it, and hope it will go away. The risk of innovative avoidance and defiance is like smoking  tobacco, it’s  hazardous and can cause death, but many people do it anyway, knowing  it can kill them. What’s your choice going to be, innovate or die?