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Wherever you look these days, mainstream brands are engaging in initiatives or taking a stand on issues that were once considered “social or environmental causes of fringe groups”. Social media has given activists a voice and platform to reach the masses like never before. And whether or not there is enough hard data or scientific evidence to categorically support their causes, there are most certainly enough unanswered questions around issues such as the safety of GMO’s, artificial ingredients such as aspartame, red dye 40, and the prolific use of pesticides and herbicides like glyphosate, to name a few. Consumers are no longer in the dark and are asking questions, reluctant to blindly believe the safety claims of corporations. As such, many iconic brands like McDonalds and Pepsi find themselves directly impacted by this growing sentiment. And more than ever before, it is a case of “adapt or die”. There are many examples of brands that have been proactive, or at the very least, quick to respond. Yesterday Chipotle announced that 100% of their ingredients are now non-GMO. On the same day, Pepsi announced that they will no longer use aspartame in Diet Pepsi. And in January 2014, General Mills announced that Cheerios will be GMO free.

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The recent announcement about Disney raising admission prices at theme parks to over $100 per day points to an important benefit of very strong brands… they can price higher and maintain upwards momentum.

Brands that provide extraordinary quality and a unique experience have enormous leverage to price higher. Said another way, it is possible to raise prices without much of a consumer push-back.

Here’s the rub. In almost every category, where products are essentially at parity, marketers struggle to hold prices, especially when there is a competitor who is willing to cut price to hold on to or grow a franchise. Thus, particularly in highly competitive categories, marketers become hostage to a pricing spiral, and reluctant to take risks or invest. As someone once said, it’s hard to look outside of the swamp when alligators are nipping at you toes. Read more →

I was asked by a friend about the Washington Redskins name issue, which was so eloquently written about in the New York Times Opinion Pages on June 24 by Michael Lewis and Manish Tripath.

Here is essentially what I wrote as a reply….

This is an interesting branding question on many levels. I am in complete agreement with the Michael Lewis and Manish Tripath conclusion.

1. Money aside, (changing the name) is the right thing to do.

2. The “model” they used (have not seen it) indicates no significant loss in revenue. My experience with name changes would bear this out. In fact, the opposite is often the case. I understand the argument about existing brand equity, but there are other important factors.

3. We would advise that the team owners look at a new name as an opportunity to re-energize the fan base. What if it attracted more fans and advertisers? Looking at the upside might help all involved think about a different and better brand and future for the franchise.

4. Lewis’s idea of involving the Native American community leaders is a brilliant way to move forward in a positive manner. It could result in an even larger upside, albeit the process might be complex so as not to disenfranchise anyone.

Change is scary for many, but, in this case, necessary. Not only has the U.S. Patent & Trademark Office voted to strip the team of trademark protections, but changing the name is the right thing to do.

17lbs. That’s the weight of the 2014 Restoration Hardware shrink-wrapped collection of catalogs – 12 catalogs to be exact – that arrived at my house, unsolicited, via UPS. My first reaction was disgust. Utter disgust at the waste of paper and ink and use of fossil fuels required to ship it to my house. As a diehard proponent of sustainability I am horrified, but as a branding consultant, I started to think about why so many brands are reluctant to challenge the way they have always conducted business in order to become more sustainable.

Does Restoration Hardware really have to send out 17lbs of catalogs to sustain their business? Isn’t there a better, alternative way to market their products? Why is it so difficult for them to think outside the box and challenge the status quo? We live in a virtual world, a digital age where so much business is now conducted online and on mobile devices – you’d think that they would embrace online catalogs, finding new creative and innovative ways to showcase their products in a virtual world. Perhaps it’s inertia? Or fear of losing business. Or maybe they just have their heads in the sand?

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Intel just created its own proprietary corporate font to be easier to read in the global digital world. They call it “Intel Clear”. A smart move in a number of ways. First, it gave them the opportunity to assess the equity in their existing font and think through whether and how much to change. Second, It caused them to think about how their critical audiences, internal and external, national and international, should perceive Intel as the communications media evolve so dramatically and rapidly.

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The acquisition of Beam Inc. by Suntory Holdings of Japan, has created a storm of concern about whether the heartland American brands, Jim Beam and Maker’s Mark will change. With enormous heritage, both brands have very loyal franchises and passionate consumers.

And despite the fact that they have been around for a long time – Jim Beam was founded in 1795 and Maker’s Mark in 1958 – these brands continue to enjoy organic growth, and are benefitting, possibly even contributing to, a resurgence in the popularity of bourbons and whiskeys globally. Read more →

Ad Age reported that Velveeta inventory is running low, just as Superbowl parties are only a few weeks away. This has created yet another media feeding frenzy. The Chicago Tribune calls it “Cheesepocalypse”. But the underlying reason is quite deep. Velveeta has earned our trust as a brand that hasn’t changed, and in the confusing world we live in, anchor brands are very important. Moreover, anchor brands like Velveeta often become part of a national tradition, a cultural touchstone that has meaning and value beyond the functionality of the product.

Velveeta was invented in Monroe, NY in 1908 at the Monroe Cheese Company. By 1923, it was spun off into the Velveeta Cheese Company and subsequently sold to Kraft Foods. In the early 1950’s, the product was reformulated into a cheese spread, and has not wavered since. Used as a base for dips, and in sandwiches and macaroni and cheese, it has been a staple in homes in North America and Canada. It is also an ingredient in dips at Superbowl parties everywhere. Read more →

Inertia is an amazingly powerful force, and “reason” often proves inadequate to overcome it. Think about how hard it is to get people to move their bank accounts even when it is clearly in their financial interests. Or why nearly three-quarters of all corporate change initiatives fail, no matter how well argued, or how compelling the business case.

Human behavior is hard to change, and this is one of the biggest obstacles facing businesses selling sustainable products and services. We believe that brands are uniquely well placed to help, because they can speak two languages – reason and story. And they can leverage the unusually powerful relationships they have with consumers.

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This blog was originally featured on the Shared Services and Outsourcing Network’s website on October 10th, 2013.

One of the great challenges of a shared services division is to attract the best talent and keep them motivated. This is understandable. Because the concept of “shared services” has built into it a negative stereotype from the start, creating and managing a strong internal “brand” can accomplish a number of important things:

• It can signal the true value the shared services team provides and define value in a new way
• It can be a beacon to attract the best talent
• It can keep the team not only motivated, but also excited to continually elevate the value of what the team can deliver.

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