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 →
January 17, 2014 1 Comment
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 →
January 10, 2014 No Comments
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.
November 12, 2013 No Comments
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.
October 29, 2013 No Comments
Riddle me this: how do you boost sales by almost one third while telling your customers to buy less from you?
Sustainability and authenticity are the twin brand values that can power this exemplary business growth, and Patagonia is the current exemplar.
For some time now, Patagonia has been urging customers to repair and keep their $700 Patagonia parkas rather than buy new ones. The result? Sales increased almost one-third to $543 million last year, which included about nine months of the “Buy Less” marketing campaign.
October 4, 2013 No Comments
Generation Y Should I Trust You? The Challenge for Brands
Brands are symbols of trust – we use them as navigation beacons in a landscape of uncertain options. But the next generation of consumers is re-defining what it takes to be trusted. At the core of this re-definition are two attributes: sustainability and authenticity. Brands that lack those qualities will struggle increasingly to attract either consumers or recruits.
According to research by The Intelligence Group, this next generation of consumers, described as Generation Y or ‘Millenials’, want to make the world a better place, and they’re demonstrating this intent in the brands and products they choose, ‘… products that follow ethical practices and are aligned with social causes’. (adweek: responsible youth)
For these digital natives, sharing is a normal part of life. Everyday they share photos, ideas, technology and information about themselves. Defined by The Cloud, a key facilitator of this ‘open source‘ lifestyle is mutual trust and the brands that can demonstrate the qualities that drive trust, like honesty and authenticity, will benefit from Generation Y’s loyalty.
August 2, 2013 No Comments
This blog was originally featured on the Shared Services and Outsourcing Network’s website on July 22nd, 2013.
Shared Services often miss the opportunity to communicate the value they provide, and consequently live under a pervasive and somewhat negative perception. This doesn’t have to be the case. Focusing on the Shared Services “brand” is one way to change these perceptions.
Because the origin of Shared Services is rooted in cost cutting, there is a naturally built-in stereotype that what costs less must not be as good. But this doesn’t have to be the case. Strengthening the Shared Services brand, especially to internal audiences, is a very powerful way to communicate the positive value of a Shared Services model. Aside from the corporate arguments that Shared Services are really about reducing costs, you should be promoting the realization that there is an enormous amount of condensed wisdom in a Shared Services organization. It is, de facto, the central node of knowledge and insight. Imagine if internal customers understood this value and could tap into it. So use the brand to focus their attention. Read more →
July 26, 2013 No Comments
What can the difference between a straight line and a circle teach us about building a sustainable economic system that fuels growth without destroying our planet? And what do brands have to do with it?
The answers are “lots” and “lots”, respectively.
This is the first in a series of posts in which we will explore the relationship between brands and sustainability. So we thought we should start by questioning whether consumerism itself is sustainable. Is it reaching the end of its useful life? And if it is, what can replace it as an engine for economic growth?
The law of unintended consequences has meant that the existing model of consumption makes many of us sick, unhappy, stressed, and time-starved; it fails to produce affordable food that sustains healthy life; it fails to offer work that gives us a healthy sense of meaning and purpose; it gradually renders the planet itself unviable; and it makes only 1% of us wealthier.
For most of us, this is not a good deal. For our children, it’s disastrous.
In his book ‘Cradle to Cradle’, William McDonough recognized that in nature’s cyclical design, resources are infinite. Yet human industry is driven by a traditional linear economic model: Take (resources) – Make (stuff) – Dispose (dump when the new version comes out).
So which is the better (more sustainable) option? That’s where the circle comes in.
July 15, 2013 No Comments
David Brooks, an Op-Ed Columnist at the New York Times writes a very interesting article about the differences between the use of and understanding of brands between the Americans and the Chinese. His premise is that the Chinese are not good at building brands that connect with consumers in the West despite the fact that they have the largest economy in the world. This will hinder their achievement of global economic dominance. He is right.
However, one of his notions is only partly correct and flies in the face of what great brands work hard at every day. Brooks believes that “People who create great brands are usually seeking some inner longing of their own…”. In this he is thinking about romantic notions of founder-led brands like Nike or Ralph Laruen.
What he is missing is that great business leaders spend a great deal of time and energy to understand their customers and their needs, and then address them in a way that builds an enduring relationship that can last a long time. In most cases it is the diligence and hard work requiredto build stronger relationships with consumers than competitors in every category that leads to sustainable market leadership.
Much of what Brooks writes about is very true, and he is astute to recognize as much as he does. Where he misses the mark is realizing that there is a process and method to establishing and building a strong brand that connects with key audiences that works on it’s own and is not necessarily founder led. Just look at a few minor brands like IBM, General Electric, BMW, New York Yankees, Mayo Clinic, etc. Sure each was founded by great thinkers and leaders, but they have evolved into very strong brands generations past founder longing.
Congrats to Brooks for recognizing how brand have become an engine of the Western economic growth. His basic premise is more than correct.
May 31, 2013 No Comments
To ensure a seamless image, smart brands take responsibility for both the content of their ads, as well as the environment in which their ads appear.
Vigilance is especially necessary online, where intelligent software and e-marketing technologies allow brands to target the user, not the environment. The old adage of ‘fish where the big fish are’ has never been more true. With varying degrees of success.
A friend of mine recently joked on Facebook: ‘If the ads that Facebook so cleverly targets at me are correct, I need to: a. Lose 9kg. b. Buy a motorbike and c. Attend the classic rock concert at Willowbridge Barnyard Theatre. Now that’s artificial unintelligence if ever I saw it.’
She’s a fit, slim, married, mother of two in her 40s, who lives in the suburbs and drives a family-friendly 5-seater VW.
But getting it wrong can have more sinister results. What happens when a brand finds itself in an online environment that potentially undermines its image? Read more →
April 30, 2013 No Comments