Design 4 Brand

5 Brand Strategy Lessons from Obama and McCain

admin — Tue, 11 Nov 2008 21:26:46 +0000

Now that the election is over and we can all calm down a bit, it’s time to reflect on the learnings on brand strategy from the Obama and McCain campaigns. No matter which candidate you favored, there are distinct differences in how Brand McCain was managed versus Brand Obama. Here are 5 important lessons.
Lesson 1: Know the Trends that Impact Your Customers and Your Brand
If there was one advantage that Brand Obama had going into the early primaries, it was embracing the trend of change. He was the first candidate to stake his positioning around it. Hillary Clinton jumped on the change trend, but much later than Obama. And by adding on “experience” to the change message, she left herself hanging in-between these two brand attributes.
How well do you know the social, business, marketing and design trends that are impacting your brand? Are you using these trends to help shape your brand strategy?
Lesson 2: Address the Emotional and Social Needs of Your Customers
Remember the early days of the campaign when most people insisted that Obama was merely a great orator but lacked substance in his talk? What he understood was that the Democratic candidate needed to first resonate with the customer base (e.g. all voters in the U.S.). Making the rational arguments of the political platform without keying into the emotional needs of the constituents has been detrimental to the Democratic brand since the time of Ronald Reagan. The economic meltdown obviously amplified this desire to turn a new page. Obama made sure that his brand first met the emotional and social needs of his customers, and only then did he specify how the functional elements of his plans would work. Sarah Palin obviously understood and strongly met the emotional and social needs of her customer base as well. The difference? Obama viewed his market as the entire electorate, thus extending his brand into many more sub-segments.
Can you map the emotional and social needs of your customers? Do you have specific plans to address these?
Lesson 3: Create a Clear Positioning and Stick to It
This was perhaps the most important element of the success of Brand Obama and the greatest failing of the McCain brand. Once Obama staked his positioning around change, he stuck to it. When his competitors attacked him on his lack of experience, his associations, etc., he and his team kept to their positioning and stayed on message. Brand McCain, in contrast, did not have a clear position. Was it experience and change? Was it old, but not too old? Was it conservative, but centrist (except for the Palin sub-brand)? The position seemed to shift week to week, as opportunities arose.
Do you have a clear and differentiated brand position? When your competitors attack you, do you react by changing your position, or do you hold firm to the value proposition you have taken to the market?
Lesson 4: Use Social Networking to Create Brand Evangelists
It’s been well-documented that Brand Obama embraced the learnings from the 2004 Howard Dean campaign and heavily leveraged the social networking power of the Web. From acquiring donations to getting supporters to volunteer at a moment’s notice, to deflecting any unwarranted attack, Brand Obama fully understood how to use the Internet to take action. His site was well designed and easy to use. He used the power of social networking strategically. And it reinforced the emotional connection with his volunteers and kept them engaged as active evangelists.
Is social networking a core part of your promotional strategy or a mere afterthought?
Lesson 5: Have a Design Strategy that Supports Your Brand Identity
Remember John McCain standing in front of the green screen and looking old and tired as he addressed his audience? Clearly someone was not paying attention as to what this would communicate about the McCain brand persona. What was the persona of the McCain Brand? The campaign theme was “Maverick”, but the persona seemed to be “loyal and experienced.” At the end of the day, the brand identity was confused and confusing. How many times did you hear, “Is this the John McCain of 2000 or the John McCain of 2008?” Then there was the $150K shopping debacle of Sarah Palin. It’s not that I begrudge her the clothes, and I certainly think it is the right of the RNC to spend their campaign dollars as they see fit. But it just was so contradictory to the brand persona that Sarah Palin and Brand McCain was trying to build. Once again, Brand Obama was disciplined in its identity and conveyed a persona of “youthful, forward-looking and presidential.”
Do you have a clear line of sight of when and where your customers meet your brand? Does every point reflect your brand identity?

At the end of the day, you need to manage your brand strategically, review and refesh it as needed, but don’t change your tactics every quarter, based on tactical goals.

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Boost Mobile Shifts Brand Positioning to Price-Value - Is That Smart?

admin — Mon, 27 Oct 2008 19:16:15 +0000

Boost Mobile, a unit of Sprint best known for its teen positioning (”Where you at?” campaign) is changing its positioning to a value message, according to Todd Wasserman in BrandWeek. Facing strong pricing competition from the likes of Cricket and Tracfone, Boost is reducing its rates from 20 cents to 10 cents a minute. The new pricing is centered around an all-you-can-talk-for-one-dollar plan, which applies to in-network calls. The campaign uses a “Dollar a Day Chat Plan,” with George Washington as the metaphor figure. It’s a definitive shift from lifestyle positioning to price positioning.
Which begs the question: Given the current economic climate, is this the time to put all your brand eggs in the price-value basket?
It’s tempting to do so, especially when your boss is looking for the next quarter’s results, but beware!
We could do a whole series on price wars, and maybe my colleagues at the Chasm Institute would like to comment on pricing strategies in the mature market. But let’s just take the positioning itself. The problem with positioning on price only, is that it leaves you nowhere to go when your competition comes back and undercuts you with special promotions or even long-term pricing drops. This approach gets you into the dreaded Price Promotion Doom Loop. If Boost is trading off long-term brand value for short-term gains, they will find it difficult to recover to any type of premium positioning. This leaves room for competitors like Virgin Mobile (”You Rule!”) to maintain its Cool factor with youth, while offering alternative plans to compete with Boost. I believe Boost will weaken its brand and paint itself into a corner that it may regret. Its teen customers will only buy on price for so long. In the end, the personal image connection will win out. That means cool designs, and rebel positioning. We’ll see. But in these times, it is far better to keep your core positioning and emotional connection strong, and play with pricing, rather than the other way around.

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Brand Strategy Critical for Local Government Service Providers

admin — Mon, 20 Oct 2008 15:28:48 +0000

If you are a local government or publicly-funded organization, or a non-profit entity, then now is the time for you to create a compelling brand or refresh the one you already have. Brand is all about relationship and both the economic conditions and the high mistrust of government means that your relationship with those who fund you may be suffering, without you even being aware of it. And the steep drop in consumer spending will be more than matched by a drop in contributions and support for the governmentt and non-profit sectors.
If you are a local provider of governmental services, then you may be suffering through an association with the governmental master brand - “those folks in Washington.” The record level of mistrust and frustration with the national government means that organizations who provide local services need to renew their relationship with those who fund them. Brand is all about a trusted relationship. How trusted is the one your local citizens have with you? Do they feel that you provide an important service and do so in a highly efficient and trusted manner? Or do they associate you with a bloated and misguided bureaucracy?

What should you do?
First, assess where you stand today. Survey a percent of your local citizens. And conduct some deeper interviews to get at what is really important to your constituents. Look for areas where you can not only fix problems, but where you can innovate new solutions.
How deep is your relationship? Do citizens support you out of a sense of necessity, or do they feel proud to be associated with you? Are they loyal to what you stand for?
Review your value proposition. Are your services still what people need? Do you deliver them in a way that matches your community’s lifestyle and adoption of technology?
Have members of your community give feedback on your brand identity. What does your name, logo, etc. communicate to your community? Do they convey that you are professional, yet approachable?
Finally, how do you maintain and build on the relationship you have? Newsletters? Community events? What about blogging? Do you do these on a consistent basis. How effective are they and how do you know)?
If you are a leader in your organization, then you need to have a good handle on your brand strategy. Don’t wait until the next election cycle.
Do it now.

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Microsoft Brand Campaign Misses the Mark

admin — Sat, 27 Sep 2008 17:39:05 +0000

In the words of Jerry Seinfeld, “What’s up with Microsoft’s corporate brand identity?” The new ad campaign with Misters Seinfeld and Gates is remarkably unfunny, unconvincing, and just boring. And I’m a great Seinfeld fan. But who wants to see Bill Gates nerdily shake his suburban rear end? I don’t mind the absurdity of future PCs being made out of chocolate, but how does that help Microsoft position themselves against Apple? Answer: it doesn’t.
A worse problem is in the ads where a John Hodgman look-alike pathetically whines that he is a PC and he has been mocked. Alas! Oh, shame! Then the ad cuts to real world/global PC users who work outdoors, as artists, etc, all to show us that there are “cool” people who use PCs powered by Microsoft. The effect is to reinforce in the viewer’s mind just how un-cool the PC is, compared to the MAC. The old adage of not wanting your customers to think about the competition applies here.

Microsoft doe shave the ability to differentiate their brand. The idea around working without walls is intriguing. it would help if we actually saw these people with a PC doing something creatively or making a breakthrough discovery. Microsoft should have started and stayed with the “working without walls” theme, and drop the pathetic attempt at responding to the popular Apple ads.

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Sometimes a Parent Brand Needs to Play Second Fiddle

admin — Mon, 25 Aug 2008 16:21:43 +0000

Some colleagues and I were discussing the branding of the Green Works cleaning products when I was in New York last week. As you may know, Green Works is the eco-friendly brand by Clorox. The question was whether Clorox was literally too harsh of a master brand for a group of products marketed for environmentally friendly properties. If Clorox equals bleach, can a Clorox product equal eco-friendly.

When you see the product on the shelf, “Green Works” is the primary brand. This is emphasized by the sunflower drawing and logo. The Clorox logo is also there, but smaller and lower on the package. This allows Clorox to serve as an enabler brand to Green Works. It gives Green Works credibility to the shopper that the product comes from a trusted brand. And having a third-party endorsement from the U.S. EPA helps to verify that this is a genuine green product. I do find it confusing that Clorox chose to have both clear and white packaging, but that is most likely due to the color of the cleaning product itself inside the white packaging.

As a direct brand, Clorox would have had some difficulty going after the green-conscious consumer. Green Works allows them to target this segment with a primary brand. But a green product must also fulfill its primary function, as well as be environmentally safe. If a cleaning product does not perform the job of a good detergent, few people are going to buy it. Both the name “Green Works,” and (more importantly) the Clorox logo tells the consumer that this product will get the grime out, while being safe.

Clorox is a believable endorser brand because of its history. Having non-chlorine bleach products, such as Clorox 2, also helps to close the perceptual gap.

Choosing how to align your parent brands and sub-brands is an important step as you extend your company’s products and services into new customer segments. Think it through and test it out.

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Green Energy Solutions Face Challenging Market Dynamics

admin — Thu, 14 Aug 2008 16:52:10 +0000

Taking green energy products and technologies to market has a unique set of challenges. Many companies have an unrealistic expectation of market penetration (build it and they will come). Yesterday I attended a symposium on entrepreneurial opportunities in the green market, sponsored by the Oregon Entrepreneurs Network. It was time well spent with Spencer Beebe, founder of EcoTrust, venture capitalists and the heads of local, sustainable businesses in the Portland area.

On the “What’s Investable?” panel were experts in alternative energy funding (Dave Chen from Equilibrium Capital, Mike Butler from Cascadia Capital, Steve Eichenlaub from Intel Capital and Wayne Ebree from Reference Capital). I asked them, from their experience, how the market dynamics for altrernative energy differed from traditional hightech market dynamics. There were some key differentiators.

Firstly, thedevelopment of solutions takes longer. They are seeing more incremental solutions than brand new technology deployments. Partly this is due to the intensve capital it takes to develop solutions, without the clarity of a sure ROI for investors.

Secondly, new solutions face a huge chasm of governmental regulations. In some cases these regulations at all levels of government can help speed up adoption of new technologies (e.g. ethanol). But more often, they slow down deployment due to overlapping and conflicting guidelines and rules. Most companies do not forsee how complex this barrier can be.

Like traditional high-tech olutions, new energy solutions must solve a real problem and fit into the existing infrastructure, and be able to rely upon a sustainable supply chain. Once adopted, however, the levers of deployment are huge. The trick is to understand what can cause your solution to fall into the cham, manage your capital and burn rate, and work with the existing energy infrastructures rather than try to re-invent the fundamentals.

More from the OEN Green Advantage symposium later on…

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Are your customers lost in a green fog?

admin — Mon, 11 Aug 2008 14:47:12 +0000

Notice how many brands are promoting “green?” That can be good news for consumers, and hopefully the planet. But it could be bad news for you if you want to bring a green product to market. The market is so inundated with organic, local and sustainable products that consumers are beginning to experience a “green fog.” It’s difficult for them to sort out what is truly good for the environment and what they can do about it in their own lives. And they have a healthy skepticism that companies really do something significant to improve the environment or that a product is truly green. What can you, as a manufacturer, do?

One key step is to be very crisp in your positioning. Before you market your green product, ask yourself these questions:

1. Who is your product for? Be specific. Just saying that it is for those interested in a healthier lifestyle or an environmentally friendly product is too vague to help you position correctly. Do you need to appeal to different generations?

2. What exactly is your product or brand and how specifically is it helping the environment? Is the primary value of your product its low impact on the environment or is that an extra bonus? Which do your customers care about?

3. Is the core function (cleaning, printing, playing music) as good as, or better than, the competition? You don’t get a pass on the quality of the basic function of your product just because it’s “green.”

4. What are the specific attributes you can claim, both for the core functions and the environmental friendliness? Is it specific in the materials you use? Is it your company’s redesigned supply chain? Is it because you have reduced your intake of raw materials? Your answers will help determine what exactly you should promote.

5. How will you promote your green attributes? With a key message on the packaging? In advertising and PR? Wherever it is, be simple and direct. Make the advantage and the proof points easy to find.

Having crisp and clear answers to the questions above will help customers cut through the “green fog” and see the true value of your brand and your products.

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Rollout of New WalMart Brand All Backwards

admin — Fri, 25 Jul 2008 16:12:03 +0000

When the new WalMart logo appeared a few weeks ago, many of us speculated as to its intended meaning. What was that starburst all about? My belief is that it has to do with repositioning the WalMart brand against competitors such as Target, who allow WalMart to hold the low-end price leader position. But it’s a guess, because WalMart’s brand management has been so confusing.

The only thing stranger than the new corporate identity is the rollout itslef. I went visiting WalMart stores and saw no sign of the new logo. The old WalMart logo, with the star, was on the front signs, the shopping bags, the name tages, everywhere I looked - except on the bottom of the WalMart TV news screen. There the new starburst logo sat by itself. The familiar yellow smiley faces still filled the store, touting WalMart as the low-price leader. But the new logo was noticeably absent.

The rollout of the logo shows a brand identity program that is completely backwards. Let’s think about it. About 8 months ago, WalMart announced it would be selling organic produce. Aha! Something to entice the more upscale customer. But could they believe WalMart as a trusted provider of organic products? Hmm.

Then we got the new tagline on the radio and TV ads: “Save money. Live better.” So, now it’s not just about looking for the lowest price, but to live a richer life because I can spend my saved money on things that matter (hopefully on the organic produce). Months after that comes the new starburst logo, with no explanation. And dripped out ever so slowly. Have you seen the ads that have the old bags and the new logo? I can hear the discussion in the WalMart conference room. “Why waste money re-doing old footage when we can just edit the old ads and the new logo together?”

Yes, implementing a new logo costs money. If anyone understands supply chain costs, it’s WalMart. But that is no excuse for getting the order of the brand identity all wrong. First we should have seen the new logo with a big messaging splash about how you can not only save money, but live the better life. Then, with that positioning firmly planted in our minds, should have come the proof points, such as the availability of organic produce.

This so-called campaign is a muddled mess. Yes, they saved some implementation costs. But they lost the brand message. Maybe their new tag line should be “Save money. Muddle brand.”

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Coke uses social media to balance global and local branding

admin — Tue, 22 Jul 2008 16:56:30 +0000

An international brand always has to determine how to capture the hearts and minds of customers in local markets while maintaining its corporate identity. I think the folks at Coca-Cola have done a marvelous job of doing just that with their sponsorship of the Olympic Games in Beijing. They’ve always done well in China, and it helps that Coca-Cola translates into Mandarin as “Delicious Happiness.”

To build on their success, they’ve taken the Olympics platform, a symbol of human beings from around the world coming together, and created their “Design the World a Coke” campaign. This social media program invites consumers to redesign the iconic coke bottle.

Think about that - using the core design element of your global brand and encouraging individuals to play around with it - creating whole art galleries if they want to - and posting them on the web. The result is that it strengthens the global brand by playing on the theme of unity through diversity and individual creativity. All of this plays delightfully into “Delicious Happiness,” especially for the folks at Coca-Cola.

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Brands Benefit from Promotion of Social Values

admin — Fri, 18 Jul 2008 20:46:36 +0000

Every brand needs to do four jobs for its customers: functional (what the products do); emotional (how I feel when I use the products); economic (do I feel this is a good use of my dollars); and social (help me feel connected and socially responsible). The social value of brands has been gaining quite a bit of momentum since the early 2000’s. Think of all the commercials you see where companies tout how they are good corporate citizens. They are trying to let you know that if you buy their products, you can feel good about your purchase.

Cynical? In some cases, yes. But if brands can truly discover not only what creates and emotional connection with their customers, but demonstrate a hgher social value (what Dave Norton calls “brand truth”), then they can pull away from their competitors. Consider the Body Shop.

Brand and product positioning based on higher social and emotional value can command a premium price in the market. Think ethos water, organic clothing for children, working vacations to Costa Rica vs. Cancun.

The social job is not always the most important and cannot be done at the sacrifice of brand trust. But it can add to your brand’s value.

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