Vayu Media Articles: June 2009 Archives

By Larry Light

 

Brands do not die natural deaths. However, brands can be murdered through mismanagement. Some brands are beyond hope -- but others can be revitalized.

 

Of course, it's not easy. But it is well worth the effort. We at Arcature developed the following principles and practices over the years while working with a variety of clients in a variety of businesses. They're also practices we applied during my tenure as global CMO of McDonald's from 2002 to 2005.

 

For a brand to be successfully revitalized, everyone needs to be on the same page. Then they must follow the six rules of brand revitalization listed here. This "Plan to Win," as we call it, is built around the eight P's: purpose, promise, people, product, place, price, promotion and performance.

 

Rule 1: Refocus the organization

Refocusing the organization begins with redefining the brand and business purpose and goals. The brand purpose should be aspirational. At McDonald's, where I held the post of global CMO, we defined the long-term ambition "to be our customer's favorite place and way to eat and drink." For the first three years, the primary focus was on becoming the "favorite place and way to eat." As Jim Cantalupo, McDonald's CEO, liked to say, we would "be bigger by being better." How would we accomplish that?

 

Rule 2: Restore brand relevance

The brand promise is an articulation of the relevant and differentiating experience that the brand will deliver to every customer, every time. Brand revitalization means defining where you want the brand to be and then deciding how to get there.

 

Over the years, the essence of the McDonald's brand was the perception that it was an affordable, convenient brand for families with kids. There were those who said that equity could not and should not be changed. But McDonald's set out to change people's perceptions and go from appealing to the child in your heart to appealing to those with a young-adult spirit at heart.

 

Rule 3: Reinvent the brand experience

To revitalize a brand, we need to bring the redefined brand promise to life. This is what the five action P's are all about. The five action P's are people, product, place, price and promotion.

 

People come first. Building employee commitment to the new direction, employee confidence, and organizational and employee capabilities are critical factors that influence future success.

 

And it's imperative to inspire those in the organization to believe that the new brand future will happen and that they can help. At McDonald's a new on-boarding communication was created called "Learnin' it. Livin' it. Lovin' it."

 

Product is the next P. Products and services are the tangible evidence of the truth of the promise. When we redefine the promise, product and service renovation and innovation are imperative.

 

A disciplined approach to brand extension can revitalize and strengthen a brand. McDonald's extended its product range to include products such as salads, yogurt parfaits and coffee. The Crest revitalizations included extensions beyond cavity prevention to include tartar control, whitening, breath freshening, dental floss, mouthwash, tooth whiteners and toothbrushes.

 

The place is the face of the brand. Whether a store, a website, a retail display, a kiosk or wherever the "place" may be, the experience must be consistent with the intended brand direction. For example, McDonald's embarked on a very ambitious retail reimaging program. It also updated the brand website.

 

Price comes next. The launch of the McDonald's Dollar Menu created an everyday-low-price list of items and enabled the brand to significantly reduce marketing emphasis on on-and-off discounting. Overemphasis on deals and discounts builds deal loyalty rather real loyalty.

 

Promotion comes next. In September 2003, a new global campaign was launched in 119 countries. The common signature theme was "I'm lovin' it," supported by a distinctive set of five musical notes. The character of the communications was designed to reflect the new young-adult spirit of the brand. The following year, McDonald's adopted its first global packaging approach. It's the longest-running theme in the history of the brand.

 

Whether advertising, special events, public relations, online, cause marketing, sponsorships, Olympics, World Cup or other forms of communication, the goal was to be consistent with the new McDonald's brand promise. Disconnected, monthly promotional messages and tactics destroy brands.

 

Rule 4: Reinforce a results culture

Measuring and managing performance is the eighth P. The McDonald's Plan to Win included three-year, measurable milestones.

 

Creating a results culture means it is important to produce the right results the right way. A balanced brand-business scorecard should include measurable elements such as brand familiarity, brand reputation, employee pride, customer-perceived value, brand loyalty, sales, share and profit.

 

Rule 5: Rebuild brand trust

In this skeptical, demanding, uncertain world, trust is a must. As part of revitalizing a brand, rebuilding trust is critical. Investment in rebuilding trust is an important, challenging marketing imperative. There is demand for more openness, more social responsibility and more integrity. Over the years McDonald's invested in building trust -- Ronald McDonald House, environmental responsibility, commitment to employee diversity, local community activities. As the concern with healthful living has grown, so has McDonald's commitment to providing appropriate choices -- for example, salads, apple slices, yogurt parfait, water, juices and milk.

 

Rule 6: Realize global alignment

The power of alignment is awesome. During brand revitalization, we often talk about the need to get everyone on the same page. But we rarely, if ever, define the page we want everyone to be on. That's the purpose of the one-page Plan to Win, the one-page document that summarizes the eight P's and the desired outcomes.

 

Brand revitalization needs the courage and perspective of strong leaders. Jim Cantalupo was a decisive, committed leader providing clear direction and priorities. Charlie Bell, chief operating officer, was not only a great communicator, his positive attitude was infectious. They were the leaders who led the creation and launch of the far-reaching McDonald's Plan to Win. The vision and positive momentum initiated by Cantalupo and Bell continues to produce results even in a difficult economic environment.

By Pete Blackshaw

 

Are we overdue for a "slow-marketing" movement? After all, the "slow foods" movement is making real headway, and there's the much-needed "slow-parenting" movement. Why should marketing be exempt?

 

Here's the rub: Speed is good, and change is gospel, but we might be moving too darn fast and making too many dumb or shortsighted moves along the way. That fuels cynicism, which is not what we need in an environment of increasingly empowered consumers, eroded trust and greater regulatory scrutiny.

 

We might all benefit from slowing down, deepening our conversations -- rather than skimming at superficial levels a mile a minute -- and re-embracing (please forgive me) some of the "boring basics": putting consumers first, listening, providing service, working sustainably, teaching, relationship building and operating ethically.

 

I'm hardly the first person to put a stamp on this concept. Wikipedia, my favorite fact checker, tells me that journalist Carl Honore kicked up the concept in the context of "quality over quantity." Marketer and blogger Evelyn Rodriguez penned a provocative blog post titled "Slow Food, Slow Sex, Slow Travel ... Slow Marketing," suggesting a need to focus on human, one-to-one connections. There's even a blog by Shannon Clark titled Slow Brand. For me, the big catalyst is social media. We've become conversationalists on steroids. We blog, we Twitter, we litter e-mail boxes. We friend, we friend friends of friends, and we "network" among a growing cast of unfamiliars we mistake for familiars based on light -- sometimes dubious -- criteria. We celebrate every online "conversation" as though it actually matters. We're breaking new ground, but we're acquiring a few bad habits along the way.

 

Before you trigger a #blackshawfail backlash, let me submit to you that a "slow marketing" movement can still keep us on track with all our wired and connected ways. My BlackBerry is not reverting to a Franklin Planner, and I still intend to punish my followers with the subtle nuances of diaper changing. At the same time, we need to reassert our allegiance to a new (actually old) set of principles.

 

Put the consumer first: In our speed, we're getting ahead of the consumer. We must always anticipate consumers' needs, but we need to be sensitive about tripping them in their paths. Attentive and disciplined listening is one critical preliminary step before we engage. At the end of the day, the consumer is our teacher -- and you don't piss off the teacher.

 

Back to the listening backyard: Social media has opened up a massive feedback and listening pipe. But we can't ignore our own brand backyards. Slow marketing is about giving direct contact as much credence as external conversation. Boring stuff like 800 numbers and direct-feedback forms -- or even a "Talk directly to us" button -- is just as important as a Twitter account. Slow marketers never miss the obvious outlets of consumer catharsis. Getting this right lends credibility to other conversational beachheads.

 

Conversational sustainability: Yes, we can get the conversation going almost immediately or launch a quick-hit buzz campaign, but the rules of slow marketing suggest that the biggest word-of-mouth dividends accrue from longer-term, often more operational investments: great products, superb experiences, world-class customer service, committed employees who fortify the brand. One could argue that Apple is a slow-marketing winner.

 

Build brand credibility: A slow-marketing movement would suggest that before we go crazy with the new and cutting-edge, we must reflect on what it means to be credible in this new environment. Consumers can see right through us, and credible brands win. Just ask the editors of Wikipedia. This is basic, boring and perhaps uninspiring but essential.

 

Create the hub first: Add the satellites later. I recently sat in a presentation where a social-media-enamored brand executive suggested killing off the brand website. A slow marketer would never dream of that. The website is the hub for essential information, basic consumer search, syndicated content (including for retailer partners), direct-feedback opportunities, wireless applications and services, and more. Moreover, brand sites are significantly more trusted than other ad or promotional vehicles.

 

Pick your battles: The social-media feeding frenzy puts a premium on responding to all conversation. You don't need to respond to everything. Take a step back before diving in. In some cases, not engaging is the best form of engagement.

 

Business-to-business media is seeing a rapid shift of advertising dollars to online platforms, according to Outsell Inc., a research consultancy serving the information industries. But a closer look at the numbers shows that, in part, the apparent shift is simply a dwindling away of print revenues, accompanied by moderate growth online. The unavoidable fact remains that overall B2B revenues have decreased since 2005.

 

 

The Outsell report, titled "Market Analysis: Leaders in the B2B Print to Electronic Revenue Shift," found that between 2003 and 2008, print revenue's share of total B2B revenue fell from 58.3% to 40% as online revenues jumped from 18% to 33.9% during the same period; the rest came from events, which have hovered around a quarter of total revenues.

 

The bulk of the shift happened between 2005 and 2007, when print declined from 53.1% to 44.1%, while online increased from 22.1% to 30.2%.

 

Taking a slightly longer view, however, the B2B marketplace has contracted during the last decade. Between 2000 and 2008, total B2B revenues declined $4.1 billion from $24.7 billion to $20.6 billion -- a drop of roughly 17%.

 

During the same period, digital revenues jumped from $2 billion to $7.3 billion -- a substantial increase that nonetheless failed to make up for losses on the print side, which tumbled from $15.7 billion to $8.2 billion between 2000 and 2008. The trend was still evident in the most recent figures, as overall revenues fell 2.5% from 2007-2008, with print declining $1.1. billion while online grew $1 billion.

 

Thus, a good part of the percentage shift from print to online simply reflects diminishing print revenues. If total revenues had remained stable at $24.7 billion, $6.9 billion in online revenues recorded for 2008 would equal about 27.9% of the total, rather than 33.9%. And while there is no question that the future of B2B media lies online, at this rate it's unlikely the industry will revisit the high watermark of 2000 anytime soon.

 

B2B has been confronted with the same dilemma faced by other print media, including consumer magazines and newspapers -- online, while a promising area for new revenue growth in its own right, has so far failed to offset much larger losses on the print side.

 

For example, Time Inc.'s online revenues grew $57 million from 2007-2008 to about $245 million, while total ad revenues fell 7%, from $4.95 to $4.6 billion -- a loss greater than all its online revenues. Similarly, from 2006-2008, newspapers' online revenues increased from $2.66 billion to $3.1 billion, while total revenues plunged from $49.3 billion to $37.8 billion -- a loss equal to roughly four times total online revenues in 2008.

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