Category — Brand image
The postulate that “watering down” a brand has long-term affects is generally well understood by smart marketers everywhere. But recently, two brands have been caught up in literally and figuratively watering down their products and consequently, their brands. We’d suggest that the act of watering down a product, or even the suspicion of it, will have very serious and long-term impacts on the business.
The two brands are Maker’s Mark Kentucky Bourbon Whisky and Budweiser. Maker’s Mark announced that they were lowering the alcohol content of their premiere product from 94 proof to 86 proof because demand is exceeding capacity, and consumer testing had indicated that the difference was undetectable. While possibly statistically true, the idea that slowly diluting a product so that the perceived change in the taste profile is negligible could end up taking the teeth out of a product and without ever understanding why. This incremental product thinking almost always gets manufacturers in trouble. [Read more →]
March 1, 2013 Comments Off on Why “Watering Down” a Brand is a Fundamental No-No.
In a recent Wall Street Journal article by Sumanthi Reddy on new theories about why people sweat when under stress… it made me think that there is a strong parallel with brands and how they react to difficult business situations. Scientists now believe that stress-triggered sweat plays a role in sending warning signals to people around us that something is wrong. This body odor conveys a lot of information from one individual to another.
Brands under stress can “sweat” too.
They can give off signals, much like odors, and we can sense that something is amiss. Take American Airlines as an example. They have been under stress in bankruptcy for quite a while. Not only have creditors been worried, but also travelers. So what did they do… they rebranded themselves with a new modern look. In some ways, we all smelled a rat. No, they haven’t really gotten much better… their service is as sparse as other carriers, and their equipment is not significantly better than others. So they put on some new lipstick. Now we know that it was part of a complete, quiet financial re-packaging ending up with a recent merger with US Airways. So their “stress sweat” was apparent. To some extent, this scent should be a signal for investors and creditors alike. [Read more →]
February 19, 2013 Comments Off on Do Brands “Sweat” When They are Stressed?
For those living through the “Perfect Storm” of October 2012 that hit the East coast of the U.S., we all, collectively, had our senses heightened out of need. Many had no electricity, the coast had severe flooding, wind damage was everywhere and there were all manner of challenges in the days following the storm. What I found interesting is how some well-known “brands” comforted my soul as the winds howled and the storm raged on.
For example, we heated up Campbell’s Chicken Noodle and Tomato soup in the evenings over a propane stove. More than the warmth of the soup, the Campbell’s brand enveloped us with a smile and a comforting feeling that all would be OK. It was like a grandmother’s hug.
November 12, 2012 Comments Off on Brands can be the Comfort Food for the Soul
Kellogg’s Rice Krispies famous “Snap, Crackle, Pop” was introduced in 1933. According to a radio ad of the time, “Listen to the fairy song of health, the merry chorus sung by Kellogg’s Rice Krispies as they merrily snap, crackle and pop in a bowl of milk. If you’ve never heard food talking, now is your chance”. It’s arguably the most famous of all brand sounds but there are other great examples of brands that have used sound as a differentiating brand communicator. The well-researched thud of BMW’s door closing is a deliberate effort to communicate quality and a premium positioning. Smart marketers are looking at all aspects of a brand to create a memorable brand experience.
Since the 1970’s, most markets are flooded with essentially parity products. The result is a quest for marketers to find ways to drive home differentiation and make their brand more memorable and unique. This is a mandatory in today’s competitive marketplaces. Sound is one key aspect of some brands that can make a significant difference, and it is often over-looked.
October 25, 2012 Comments Off on Sound Can Be a Powerful Brand Cue… Think “Snap, Crackle, and Pop”
Heineken is introducing a new, taller bottle in the U.S. in order to help it’s flagging sales. It is a smart move on many levels, and it will be successful. But imagine the internal debate about change.
Heineken Lager Beer was established in 1873 in the Netherlands, and still uses the same recipe. It was the first beer imported into the U.S. after prohibition, in 1933, and has been a consistent bell weather brand. But while they once commanded a leading share of imports, Corona, craft beers, and even traditional competitors have introduced newer packaging and flavors, and Heineken has suffered. Today, Corona outsells Heineken almost 2 to 1. So it was out of necessity Heineken considered an alternative to the squat green bottle that has been their structural heritage. Funny how competition pushes a brand to better understand it’s equities.
September 20, 2012 Comments Off on Congrats to Heineken for Updating its Bottle in the U.S.
The press about Marissa Mayer, the new Yahoo! CEO, has focused on whether she is up to the task of reviving the company and the difficulties she will face with a declining business and less than ideal resources. While this may be true, the real challenge is whether Ms. Mayer can recapture the original, organic, innovative culture that made Yahoo! so popular in the first place. This is the engine of brand success today.
August 9, 2012 Comments Off on Salvaging Yahoo!… it’s all about Culture.
I have been a loyal Citigold customer for 20 years. But last Friday they really put a chink in my loyalty. Citigold is the “premium banking” part of Citi, a step above the masses. It has been very convenient for all these years. Here’s how they violated my affection.
First, they called me at home to market something. I guess there should be nothing wrong with that, but then again, I expect better than retail treatment as a Citigold member. Perhaps they were calling about a fraud issue, or an observation about how I could manage my account better. But they weren’t. [Read more →]
June 21, 2012 Comments Off on How Citibank has Lost my Loyalty
“Long-term brand equity and growth depends on our ability to successfully integrate and implement all elements of a comprehensive marketing program.” – Timm F Crull, Chairman & CEO of Nestle
Branding and public relations (PR) professionals have a great deal in common. Branding professionals develop and communicate a promise. PR professionals bring that promise to life through stories, case studies, videos, events and points-of-view. Despite the common ground, branding and PR professionals don’t always collaborate. In some cases, this is because accountabilities reside in different departments. In other cases, it’s because each discipline has its own way of doing things.
May 1, 2012 Comments Off on What Branding and PR Professionals Can Teach One Another
Kraft’s decision to name its soon-to-be-stand-alone snack division, “Mondelez” is a very smart move in more ways than one. “Monde” is derived from the Latin word for “world” and “delez” means “delicious”. By separating the snack division from the North America focused grocery division and giving it a name that is clearly not America centric, Kraft is establishing a business that will have global appeal.
March 26, 2012 1 Comment
Who would have predicted that in the year 2012, a silent movie would win the Oscar for Best Picture? The fact that “The Artist” defied the odds is a manifestation of consumers’ demand for “less is more”. Consumers are rejecting the “bigger is better” culture that dominated the late nineties and 2000’s and came crashing down with the global economic crisis. Add to that the daily barrage of information, advertising, news, social media and politics and you have a consumer audience begging for simplicity, less clutter, honesty and integrity.
February 28, 2012 Comments Off on “Less is More” is the New Paradigm in Building Brands