Branding Strategy Insider

Overcoming Common Brand Problems - 40

As we round out our list of the 40 Most Common Brand Problems we see one that the human resources department is called on to avoid...

Common Brand Problem Number 40: Since branding has become widely known and embraced, I increasingly encounter people who can talk the talk, follow the steps in the brand management process and generally take a number of actions on behalf of the brand. What I often find missing though is a true deep-down understanding of what makes the customer tick and a passion for exceeding customer expectations in unique and compelling ways. That is, I see allot of people going through the motions without the depth of insight and the passion for excellence and differentiation. People often think that a new logo, tagline and brand style guide will “do the trick.” Usually, these are not based on deep customer insight and a carefully crafted compelling point of difference. And just as often, business managers are not willing or able to make the changes necessary to actually interact with the customer differently based upon the new brand promise.

Analysis: The art and science of branding is much more difficult than it first appears to be. While many people are labeled brand managers, only a small fraction of them have what it takes to really build strong brands: the research tool set, the deep understanding of human motivation, the intuition, the analytical rigor and the driving passion and savvy to influence the entire organization. Organizations should be much more careful in selecting their brand managers. Good ones are very hard to find and worth every penny you pay them. Mediocre ones are ubiquitous and often not worth the price.

Key Point: I would recommend behavioral interviewing as one of the most effective ways to assess skills and abilities. Ask the brand manager candidates to walk you through specific case studies from their past work experiences. Probe on challenges and how they overcame them, consumer insights that led to breakthroughs, significant accomplishments and stories of how they persuaded others to join them in championing the brand.

Click here to explore the other 39 most common brand problems in our countdown.

Sponsored By: Brand Aid

Overcoming Common Brand Problems - 39

As we make our way to 40 an old problem claims number 39 on our list...

Common Brand Problem Number 39: The brand is gradually undermined by quarter-over-quarter revenue and profit pressures

Analysis: Constant market pressures to increase revenues and profits cause a myriad of problems. One of the biggest problems is putting pressure on the brand to extend into more and more market segments to broaden its appeal and to provide for more revenue growth. This eventually comes at the expense of the meaning of the brand itself. Witness Volvo. It had a very clear point of difference—family safety, until it created the 850 GLT, which was intended to extend the brand into younger and older childless markets. Volvo promoted this car as a fun car to drive—not necessarily a safe car for the family. Its styling departed from the boxy, armor/safety-implied styling of typical Volvos. The car’s success has been underwhelming, precisely because it is incongruent with the brand’s image. The degree to which the 850 GLT is successful is the degree to which it will blur Volvo’s primary point of difference in the marketplace.

Key Point: If a company must grow to keep Wall Street happy (as all public companies must do), then it should consider one of two approaches: (1) introduce new products and services that deliver against the brand’s essence and promise (a family-safe ride in Volvo’s case) or (2) bite the marketing bullet and launch new brands.

Sponsored By: Brand Aid

Overcoming Common Brand Problems - 38

A list of brand management's 40 most common brand problems would not be complete without...

Common Brand Problem Number 38: No person or department has responsibility for the brand. It lacks internal mindshare, supervision, and management.

Analysis: Fortunately, fewer and fewer organizations experience this problem these days. At a minimum, most have assigned a brand manager or a brand management department.

Key Point: The complexity of the brand management task makes it very difficult to develop a powerful brand in the absence of a brand management mindset and function.

Sponsored By: Brand Aid

Overcoming Common Brand Problems - 37

As we record the 40 Most Common Brand Problems we see one few marketers will ever avoid...

Common Brand Problem Number 37: Well thought-out marketing decisions are second guessed by non-marketers who think marketing is a matter of opinion rather than an art and a science in which experience matters

Analysis: When people without marketing experience, insight, or appreciation are in positions to evaluate, review, and approve marketing decisions, the common result is ineffective marketing.

Key Point: Most marketers would never claim to know how to perform surgery, write a legal brief, design software, or reconcile journal entries. Yet many doctors, lawyers, engineers, accountants, and others think they can produce a better ad or develop a better marketing campaign. Just because marketing seems less than “black and white” and isn’t always measurable on a quarterly basis doesn’t mean that relevant experience doesn’t count.

Sponsored By: Marketers Seeking Employment

Overcoming Common Brand Problems - 36

Is this a brand problem you have witnessed?

Common Brand Problem Number 36: Licensing the brand name out to whomever will pay for it

Analysis: While this will generate additional revenues and profits in the short term, it is an unwise practice in the long term.

You should use brand licensing to:

•    Extend the brand into new categories
•    Expand the meaning of the brand
•    Reinforce key brand associations
•    Build your brand as a badge
•    Bring your brand to life in new ways

Key Point: You should avoid licensing your brand just for short-term gain where it doesn’t make sense. Where the licensing department resides in your organization and what its objectives are will have a large impact on how well licensing is used to build (versus bleed) the brand.

Sponsored By: Marketers Seeking Employment

Overcoming Common Brand Problems - 35

Decision making is at the heart of this common brand problem...

Common Brand Problem Number 35: Decisions that adversely affect the brand are made outside of the brand management context

Analysis: Corporate executives, general managers, engineers, production managers, salespeople, and others frequently don’t consider the impact on brand strategy or equity in such decision making.

Key Point: When making decisions (ranging from mergers & acquisitions, product extensions, and cost cutting to outsourcing critical customer services, producing private label products to fill production capacity, and offering price discounts to meet quarterly revenue goals) – always consider the impact on the brand. This highlights the importance of the CEO assuming the role of chief brand champion—and the importance of creating a brand building organization.

Overcoming Common Brand Problems - 34

We're exploring Brand Management's 40 Most Common Brand Problems.

Enter Number 34...

Common Brand Problem Number 34: Limiting the brand to one channel of distribution or aligning the brand too closely with a declining channel of trade

Analysis: For years Tupperware was caught in the rut of only being sold directly through Tupperware parties. This very much limited its exposure and growth. It was generally perceived to be a stagnant brand and its US sales declined throughout the 80s and 90s, despite extending the brand into kitchen and baby products. Simultaneously, Rubbermaid extended its brand into numerous new product categories and sold its products in a variety of channels including Wal-Mart. In 1994, Rubbermaid was one of the best-known plastic companies around. However, a few years later it was struggling because Wal-Mart, which accounted for 20% of its sales, would not allow it to increase its prices to cover skyrocketing resin prices. Rubbermaid earnings plunged and then it lost the Wal-Mart account. Due to financial struggles, the Newell Company purchased Rubbermaid in 1998. Tupperware expanded distribution beyond direct to catalogs and mall kiosks in 1992. It also expanded into Target and Kroger stores, however this did not last more than eight months as these sales were cutting into home-based sales. Between 1996 and 1998, it encountered problems with its independent consultants because it did not allow for them to sell Tupperware products online.

This is an example of how Tupperware’s commitment to a primary channel has caused it to struggle with brand exposure and growth over time, while Rubbermaid’s increasing dependence on one retailer (Wal-Mart) for a significant portion of it sales created significant problems for it as well.

Key Point: Carefully craft your distribution strategy, think through pricing issues, be fair to your channel partners and expect and learn how to manage channel conflict. Strengthen your primary channels before entering new ones. And never become too dependent on one channel of distribution for your success.

Sponsored By: Brand Aid

Overcoming Common Brand Problems - 33

We're revealing brand management's 40 Most Common Brand Problems. Have you seen or experienced this problem?

Common Brand Problem Number 33: Spending too much money on trade deals and sales promotion at the expense of brand building

Analysis: Brands shift some leverage back to the manufacturer from the retailer. (This is one relationship the manufacturer can own with the consumer.) Brands also combat category commoditization and the resulting downward pressure on price. Is your sales organization bigger and more powerful than your brand management and marketing organization? Do you know how much you are spending on trade deals and price promotions?

Key Point: Is it more than you are spending on brand building? It is difficult, but essential, to move from a sales “push” to a marketing “pull” organization if you are to maintain a competitive differential and a price premium.

Sponsored By: Harvard Business School Press

Overcoming Common Brand Problems - 32

Number 32 in our list of the 40 Most Common Brand Problems lingers on packaging, business cards and buildings...

Common Brand Problem Number 32: Choosing generic (non-proprietary) brand names

Analysis: While it might be tempting to choose a name that describes your product or service, it’s a mistake. The name can soon become confused with that of every other brand that takes a similar approach or worse yet, it can link the brand to an outdated product or technology.

Key Point: Consider brands that include “sys” or “tech” in their names. Is it easy to tell them apart? In retrospect, how about the wisdom of the “Cellular One” name now that PCS and other technologies have moved us past cellular? Own a name that is suggestive of a timeless consumer benefit (Aris Vision Institute – for laser eye surgery) or one that is “coined” and whose meaning you can define through consumer communication (Kodak or Xerox).

Overcoming Common Brand Problems - 31

We are compiling the 40 Most Common Brand Problems. Have you witnessed Number 31?

Common Brand Problem Number 31: Not keeping up with the industry on product or service innovation

Analysis: No matter how much of a market share advantage or leadership legacy you have, you should not rest on your laurels.

Key Point:The marketplace is too competitive. Constantly reinvent yourselves. Maintain a large pool of resources to invest in new ideas. Award the resources based on projected incremental sales and return on investment. Even pursue new business approaches that could make your current core business obsolete. If you don’t, someone else will. Think about the impact of digital technology on Kodak’s film-based photography leadership. Consider Encyclopedia Britannica’s entry into interactive software (which sells for a fraction of the cost of their traditional hardcover bound volumes).