Branding Strategy Insider

Of Branding and Peace

Could people from two clashing cultures come together and build a brand promoting peace? They are trying it here, and they need volunteers for some of the heavy lifting. The last time I checked we had a shortage on peace. Maybe you can help...

Sponsored By: Brand Aid

 

Brand Quote

"A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." 

Howard Shultz, Founder, Starbucks

Sponsored By: Brand Aid

Overcoming Common Brand Problems - 3

I've been sharing my thoughts on the 40 Most Common Brand Problems. Number 3 is found in an unlikely place - performance rewards...

Common Brand Problem Number 3: Focusing on short-term profitability at the expense of long-term revenue growth

Analysis: This may be the underlying cause of the previous two problems. This problem is driven by the organization’s reward systems. If brand managers and general managers are compensated and promoted for delivering quarterly or annual financial results without a focus on longer-term business growth, this is sure to occur. This problem is most acute in publicly held companies pressured to deliver impressive financial results on a quarterly basis.

Key Point: Create a balanced scorecard that integrates growth objectives into common and individual performance measures.

Sponsored By: The Brand Positioning Workshop

Brand Facts

How do you get the most out of your advertising agency?

• Give them clear assignments with clear deliverables (see "agency brief").
• Tell them that you expect their best work.
• Treat them with respect.
• Expose them to your customers and all of your customer research.
• Get out of their way. Don't micromanage them.
• Run internal "interference" for them. Don't let your internal review and approval processes adulterate their product.
• Pay them fairly for their work.
• Praise them when they do good work.

Sponsored By: Brand Aid

 

Overcoming Common Brand Problems - 2

This a continuation of my series of overcoming the 40 Most Common Brand Problems. If there is one problem in particular your brand is facing email me here. I'll be happy to share my thoughts.

Common Brand Problem Number 2: Increased product or service prices inviting low-end market segments and competitors, the cumulative result of gradually raising prices at a rate greater than inflation.

Analysis: This is the other side of a brand’s value equation: price. Consider what has happened in several industries in which companies have raised prices faster than inflation over time. Remember Marlboro’s Black Friday? Would Malt-o-Meal exist if cereal companies had not raised their prices as much as they had? And would discount card stores like Factory Card Outlet have grown from zero share of the greeting card market to over 20% within a few years if greeting card companies hadn’t raised card prices to well over two or three dollars in the same time period?

Key Point: Make sure your brand delivers a good value to the consumer. Even if price sensitivity studies show you can raise prices more, consider the long-term consequences. If you “push the envelope” on price, you will invite two outcomes: (1) consumers leaving your category and (2) new competition.

Sponsored By: The Brand Positioning Workshop

What is a Brand? Our Collected Definitions

Brand Definitions. We've all heard a few in our time. For fun we've compiled a list from a wide variety of sources...

A Brand is:
• Names or symbols that identify the unique source of a product or service
• The personification of an organization, product or service
• The source of a promise to the customer
• A trust mark
• A single concept or idea imbedded in the mind of the customer
• A set of associations that enhance or detract from the related product or service
• The source of customer loyalty
• That which allows one to charge a price premium for an otherwise generic product or service
• A unique value proposition
• The source of emotional connections with customers
• The primary source of customer ‘goodwill’
• That which should drive the design of the ‘total customer experience’

Are we missing your definition? Please share.

Sponsored By: The Brand Positioning Workshop

Brand Quote

“To uncover hidden category needs, don't ask ‘How can I differentiate my brand from its competition?' but rather ask ‘What are the unmet needs that no brand is addressing?'” 

Janine Keogh, Category Insights Director, North American Brands, Kraft Canada Inc.

Sponsored By: Brand Aid

 

Overcoming Common Brand Problems

Awareness of the problems and pitfalls brands can encounter is an important step in maintaining a strong, healthy brand. I have identified the 40 Most Common Brand Problems and will share my thoughts on overcoming each of them over the next few weeks. As always, I welcome your comments.

Common Brand Problem Number 1: Decreased product or service quality, the cumulative result of gradual and incremental changes to reduce costs.

Analysis: There is the old story about each new brand manager of a coffee brand improving brand profitability and his or her promotion potential by slightly reducing the ratio of premium Brazilian coffee beans to the less expensive African beans. Each time, consumer research indicates no discernible difference in taste or preference, but one day the company discovers that its coffee brand share is significantly eroded. Brand quality erosion will catch up with you eventually.

Key Message: Focus cost-cutting on factors that are truly invisible to your customers, and most importantly, manage brands for the long term.

Sponsored By: The Brand Positioning Workshop