Apr 5, 2010 | Branding, Communication, Innovation, Marketing, Social Media
As you wander through the blogosphere, the pre-launch hype about the ipad is astonishing.
There are many reviews, but as very few have seen one, they are all just speculation, or Apple insiders doing their bit towards the marketing blitzkrieg.
Now it is launched, and there are reports of 700,000 being sold in the first 24 hours, perhaps there may be some realism emerging, but most of those early buyers will see nothing but the “greatness” they ascribe to the Apple brand, the shortcomings will not be noticed.
Those of us who build brands are in awe of the branding skills of Apple, but should remember their overnight branding success came after 30 years, and included some pretty ordinary stuff amongst the brilliance. Now their innovation machine is almost as well oiled as their marketing machine, but how are they going to hype away the advantage Kindle holds over access to books and magazines, or will they just accept that ipad will need to connect to Amazon to be competitive, and move on.
I suspect not, rather the other functionality will be the focus of attention, and shortcomings will be managed away.
Mar 28, 2010 | Branding, Management, Marketing
Building a brand is a “one bit at a time” exercise.
Most aspiring brand managers look at Coke, Google, Microsoft, the local leader in their market, and think about how they can take them on, and win.
The process is useful, but the reality is that you can’t do it in one big bang, it is one brick at a time.
There are many metaphors, I like thinking about the process as a bike race. You need to be in there and fit, and have the support team all pulling for you, there will be ups and downs, opportunities to go faster downhill, and hills you have to really work at to get over, but over the distance, you if build up momentum, experience, consistency, manage the risks and take the opportunities, you may earn a place in the peloton, and if you are good enough, and your timing is right, you can get to the stage finish first. Then, there is just tomorrow.
Building a brand is similar.
Mar 23, 2010 | Branding, Management, Social Media
The phenomena of social media is one that businesses need to understand, and be ready to respond when, rather than if, it gets difficult.
The Nestle Facebook page has been overrun by new “fans” after the publicity surrounding their practices of using palm oil sourced from Indonesia from areas with questionable sustainability practices. On Twitter when I checked a short time ago there were many entries, most about the palm oil, and all of them unhappy.
Justified or otherwise, businesses need to be on the front foot to be able to respond positively, and proactively to the potential of social media to undo brand integrity overnight.
The destruction of a brand, or in Nestles case, many brands is much easier than their construction,
At some point, all organizations will come under the scrutiny of groups utilizing the tools of the social media if they leave any openings at all, and these groups are currently better organised, better focused, and better able to mobilise support. Being proactive is no longer the task that should be given to the graduate trainee, but should be a board issue, as it is a major risk to the Intellectual capital and therefore value of a business.
Mar 22, 2010 | Branding, Marketing, Personal Rant
Australia rode on the sheeps back in the 50’s, but in the 70’s & 80’s the sheep turned nasty, and we mostly got off, having lost our pricing power through the competitive growth of synthetics, and strategic stupidity.
When we dismounted, looking for an easier way, superfine wool was 19 microns, now, the leading edge of the few that left are approaching 11 microns, and there is now a substantial volume of wool in the 15-17 microns range, an astonishing achievement.
When Australia unwittingly “outsourced” the many processing stages in the wool value chain, largely to China and India, it was driven by the commodity pricing mentality, that still widely exists. Now, as we chase our tails to the bottom of the price curve, we are paying the price for that short sightedness, as we have no capability left in any stage of the value chain past —-growing the stuff, to leverage the leading position of the best growers, and to supply markets with a sustainable fibre with deep capabilities to meet and shape consumers needs .
Australian Wool Innovation, the current iteration of successive industry bodies charged with the responsibility to “market” the clip is in disarray again, as they try and treat symptoms they do not understand with medicine that did not work 40 years ago.
There is no point being on the leading research edge, unless you can commercialise the output and generate a return from it by reshaping demand, rather than just taking a small premium because you are marginally better at doing what everyone else does. AWI and its predecessors have done a good research job over the years, bit a very poor marketing job.
Feb 24, 2010 | Branding, Innovation, Marketing
It seems that most innovation is aimed at getting more of the same for the same price, rather than making the experience with the product better.
Every time I see an ad for a new car, it seems to have more airbags, more electronic gizmos to go wrong the day the warranty ends, but who really needs it all to get from point A to point B reliably, comfortably, at a modest cost, which is the point of having a car.
Surely it is time to innovate backwards, do less, strip the glitter, simplify.
I used to shave with a single blade, now I am a poof unless I shave with five, my stringy beard is not five times tougher than when I was 21, just a bit more gray worked its way in.
Two businesses, Gillette and Intel have led the way in adding features that they think will give them a marketing advantage through differentiation, and then turning them into benefits.
For a funny, sarcastic view of the trend to complication, follow the link to the Onion site, and have a laugh.
Feb 22, 2010 | Branding, Marketing, Sales, Small business
What will be the continuing impact of the development of housebrands by retailers, and the current heightened value awareness of consumers? Most FMCG suppliers lose sleep over the retailers undermining their profitability by hogging shelf space with far cheaper imitations of their brands, brought to market overnight without much concern about the long term health and development of the category, but delivering short term profitability to them at the expense of their suppliers.
This apparent duplicity, retailers demanding innovation and category building activity from their suppliers, whilst undermining their ability and willingness to invest has to have its limits. Clearly, the old mass market model of branding is over, but what has replaced it?
Increasingly I see the evolution of focused brands and retailers serving the more niche markets, and segments of larger markets where something different is being delivered to customers. Retailers are enabling a new breed of supplier with deep category expertise to emerge at the expense of the older mass market model, and they are in turn fuelling the growth of specialist retailers.
