Build your brand on solid foundations if you want it to last.
This is the fourth on the series focusing on how to beat the supermarket gorillas at their own game, by building a brand that has a loyal and evangelistic group of customers . The original summary post, here, followed up by the expanded first post on the supermarket business model, the third advising to be savvy with data, and the most recent suggesting some ideas to leverage category management for the benefit of small businesses.
Reaching consumers via supermarket retailers remains a tough game, one in which the supermarkets set all the rules, own the referee, and choose who can play with them. In other words, they are holding all the cards, so to remain in the game, you have to be smart, focused and innovative.
Building a brand is not something that happens overnight, rather it happens over an extended time, and requires vision, patience, and investment. However, the fantastic opportunities for small businesses to play with the big league opened up by digital technology has bent the rules a little.
So, following are the key considerations in your brand building challenge:
Know your starting point.
As with any journey, knowing where you are now, where you want to be, and having some idea of the road in between those points is vital to success. Therefore the logical starting point is a review of your current competitive and strategic environment, along with a critical review of your own capabilities, distinctive or otherwise, and the points that differentiates you from your competitors. A part of your starting point is a clear understanding of what drives success in your business, what drives costs and revenues, how the business model works, and reacts to stress. Being self aware is as important in business as it is in personal relationships.
Have a clear picture of your customer in mind.
“Customer profiling” is for small businesses one of the opportunities they have that can differentiate them from their bigger competitors, but it takes the will to be able to say “No”, to define who you want to attract, and build your brand offering and communications to appeal to those people specifically. It makes little difference if you are B2B or B2C, the same rules apply. The closer you come to being able to define your ideal customer as a person you know, the better. A real part of this exercise is to be able to think like a customer. Some large companies now employ anthropologists to spend time in the homes of their target customers to see how they operate in the context that they are seeing as an opportunity to offer a branded product to deliver value of some sort
Have a clear view of your brand as a person.
Similarly, defining your brand with human traits is of vital importance. People relate to people not brands, therefore to build empathy, a consumer has to be able to impute behavioural characteristics, beliefs, and personality to your brand.
Build a brand differentiated from competitors in some ways of vital importance to customers.
There is little point in being the same, or very similar to everyone else when dealing with supermarkets. Negotiations then just becomes an auction between suppliers for shelf space, and once you have succeeded there, you face a reverse auction for the consumers dollars. Neither are winning strategies. Small businesses by their nature do not have the scale to serve everyone, so having a clear offer to a small group, sufficiently powerful that they are not prepared to accept a substitute is the desired outcome. If you can sit in front of one of the gorillas, knowing you only want distribution in one, and knowing that at least some of your customers will be prepared to either change their store choice to get your product, or build a bit of loyalty to their current store because it stocks your product, you have some leverage in the discussions. It is all about negotiation leverage, and differentiation that delivers value to consumers gives leverage.
Aim for the long term.
‘Lifetime customer value” has become a bit of a cliché in recent times, but that does not mean it is of less value as an idea. Building in the triggers that will bring our existing customers back time and time again is a far better way of building a brand and a business than to be constantly out fishing for new customers. The digital tools now available have given us a wide array of tools that assist in the calculation of the cost of acquisition and retention of customers. Marketing expenditure can be now absolutely accountable for results, and sensitive to even very small changes in tactics, and this is a potent tool small business can use against their bigger rivals, and to build brand loyalty. Knowing what sorts of marketing activity engages existing customers is of way more value than going fishing for new ones.
Consistency and predictability.
These two words are factors that always come up in consumer research seeking to identify the foundations of good brands. Consumers know what they stand for, know they will have those things delivered with no surprises. However, the notion of consistency goes further, to the way the brand is packaged, advertised, an positioned, they are all consistent over along period of time, change coming as evolutionary rather than revolutionary. Consumers also want to be entertained, intrigued, and engaged with their brands, and that will not happen if they are boring, so the communications have to walk that fine line of being consistent, while being constantly fresh and interesting. Few succeed, but those that do become significant players in their niche, weather that niche be a global market, like Apple, or a local market.
Differentiation.
Whatever else you develop your brand to be, and to do, make it different to everything else out there that could fill the same customer need. Without your own distinctive identity, you will be simply one of the forgotten brands that fight for shelf space on the basis of price, and then all you do is deliver profits to the supermarkets. However, differentiation does not mean a different pack size, or colour scheme, it means genuinely solving the consumers problem or addressing the “job to be done” in a different way, one that adds value by reflecting the job. You must however be very focused about what value you add to who, and why they should buy your brand over the other guy. The final implication here is that you know your competitor well, well enough to counter their obvious and logical competitive responses in the manner in which you build your brand.
Communications must be in the customer language.
Brands that communicate in the language customers use in the context in which the product is used have a chance of success, as the customers relate to the context and language. Many years ago I was a part of the team, an observer really as I was just a young graduate, that created the “you ought to be congratulated” advertising that gave Meadow Lea margarine a stranglehold on the Australian market for 30 years. In a market with many heavily advertised brands, Meadow Lea held a share of more than three times its closest rival for many years. The line, and the ads themselves spoke in the language of the primary customer, busy, smart women with families who were juggling multiple roles and responsibilities.
Plan and integrate your marketing activity across platforms.
In the “old days” the scope of available marketing activity was limited to the paid media, paid public relations, sales promotions and a few others. Now, that has changed, and the menu of available marketing tools has exploded. This huge array of options also makes life for the marketers complicated and dangerous, so great care must be taken to be consistent in your message and positioning across the whole array of marketing tools that are employed, and you need to be employing a range of them, rather than a few, depending on the behaviour of your customers. These days, social media platforms play a huge role in the development of an opportunity to sell, but in fact they do not yet do much in the way of brand-building. The core of much brand building activity is your website, to which you drive potential customers so they can check you out, and existing customers to reinforce the value of your brand in more “long form” ways like recipes, hints, detailed information, whatever is relevant to the consumers relationship with the product category and your brand. However, the most common problem with websites is that people “set and forget”. They need to be living creatures, fed and nurtured like the family pet if they are to deliver a return.
Two final thoughts.
- Even if you do all the above right, better than anyone else, but your product sucks, you will have wasted all that effort , time and money. The consumer is not a fool, they will not mistake good marketing for a good product, at least, not more than once.
- If you want your brand to last, to stand the test of time and competition, build it on solid foundations, but make it flexible enough to adjust to consumers as they evolve.
