Branding Blunder—Creative Technology's Mistakes


Recently I was interviewed by Marketing Magazine, a local magazine in Singapore that keeps close tabs on the marketing strategies companies of all sizes use to reach out to their consumers. I thought that this is an excellent case study of how important positioning, branding and marketing are for your business.

For their feature story on Branding, the magazine asked for my comments on Creative Technology’s (renowned for its sound card and MP3 players, and most recently for its legal tussle with Apple) branding efforts. While I’m a fan of Creative, I have to say that their branding leaves much to be desired. In particular, comparing the arch rivals of Creative Tech’s MP3 players vs. Apple’s iPod, it is easy to see where Creative’s branding efforts had gone wrong. Below is a simple comparison of its rival’s branding moves.

Apple
(A marketing and branding savvy company)
1. Understands the target market—young people want to be hip and cool. So they created a hip and cool positioning for iPod.
2. Very sleek and minimalist cover design—enhancing the hip and cool image.
3. Great ultra hip and cool TV ad, using black dancing silhouettes (all the better to contrast with Apple’s corporate white) against a colorful background + hit song of the moment ‘Hey Mama soundtrack performed by one of the hottest groups, the Black Eyed Peas.
4. Very focused in the beginning, starting with only one color, one model: The white iPod. This makes it very recognizable and easy to brand.
5. Special edition signed by U2 (very hip and cool band).
6. Featured in many hip TV shows.


Creative Tech
(A tech focused company)
1. Don’t understand their consumers’ desires, preferring to focus on product features, etc (appealing to logic, instead of emotions) and with no strong positioning.
2. Tacky cover designs. Responding to iPod’s sleek design, they asked their own engineers to design their new cover design! Huge mistake! Naming their products ‘Zen’ doesn’t mean that they will inherit the Zen essence.
3. Bizarre TV ads that consumers can’t relate to: one series of ad went along the lines of ‘something you really need’ and ‘Panda Rhapsody’, an ad using a panda bear listening to its MP3 player.
4. Unfocused and fragmented: Zen Jukebox, Zen Nano, Zen Touch, MuVo Slim, MuVo TX.. etc (confusing consumers with too many choices)
5. Special edition signed by Creative Technology’s CEO Sim Wong Hoo… (what?!?)
6. Almost non-existent.


While Creative Technology first came up with MP3 players, they lost out their pioneer status advantage due to incompetent branding and marketing strategies. Apple has always been an innovative company when it comes to technology. But more important than that, it has always been a company that is close to their consumers, understanding their desires.

On the other hand, Creative has no strong retail experience. Its earlier massive success, the SoundBlaster, was a technological breakthrough, but it was not really a retail consumer product. Most people who buy computers don’t know whether the soundcard inside their CPU is a SoundBlaster or not. Of course, there are those who demand technological excellence and insist on having the SoundBlaster. Unfortunately, they form the minority.

Sadly for a hip product such as an MP3 player, Creative chose to take the same approach—focusing on technology only, instead of combining it with a massive branding and marketing campaign. It is important to note that Creative’s MP3 players have received many awards and critical acclaims. BUT it sorely lacked the ‘street cred’, the approval from the target market. How many times did you hear someone say “I really want to get the Zen / MuVo / Jukebox”? You don’t hear much of that because they all want an iPod.

That is why Apple’s iPod holds near to 90% market share. Just take a look at the TV ads from both rivals and you’ll understand what I mean by Apple understanding the consumer’s mind, while Creative missed it totally.

So the next time you think that by focusing only on delivering the best product, you will be guaranteed success, think again. Creating powerful positioning, branding and marketing strategies for your business can make a HUGE difference!

Measuring Your Potential to Steal Market Share


All Brands Have Potential to Steal Market Share

Your prospect’s potential attachment to your brand can be measured and understood when you have a complete and clear understanding of the “meaning” that they assign to your brand. Uncovering that meaning is the first step in the process — understanding the implications of that meaning is the second step.

We learn a great deal about the robustness of a brand when we examine it in this way. We can understand the current preference levels, the competitors that are most vulnerable to attack, and predict trends and currents. All of this gathered intelligence data has strategic and tactical implications for all of us. If you do not have this information (and subsequent analysis) at your fingertips you are steering blindly. If your competitors have this knowledge and you don’t’ — you are on the fast track to a major collision and your brand will come out holding short-stick, even if you are currently the runaway market leader.

Knowledge is Different from Information

The idea of information and knowledge are linked — in that the clarity and value of the information you collect about your brand and the competitive market space in which you compete directly effects the value and resulting usefulness of the knowledge you glean. The information you collect is directly linked to the questions you ask. Your marketing strategy would be well served if the same amount of time that went into the analysis of the data were equally spent on the formation of the questions you ask.

When Stealing Share® or Resultant® creates research questionnaires, we spend many weeks creating the research questions. Before the first question is scribed, our strategists have already evaluated the competitive landscape, outlined the major competitors, modeled the behavior of the potential customers we wish to influence, and have hypothesized strategic solutions to the problem. Each of these important steps is necessary because strategic research is different from marketing U&A studies. In U&A studies, marketers are trying to understand how the product (or category of products) is used by the target audience and how they feel about them. Often, an analysis of awareness is included and many times researchers will also probe for what the “brand” means. These studies, made popular by companies with large R&D departments are necessary in helping guide product innovation and change. They are nearly worthless when trying to identify a strategy to take market share from your competitors.

A Preceptive Market Share Study

Preceptive is not a misspelling of perceptive. Precepts are life-organizational beliefs; they are the Magna Charta, Constitution, and Bill of Rights (all wrapped up in one). These core belief systems control everything your potential customer does, needs and wants because they “BELIEVE” them to be true. All of the desires that your customer needs to fill are a result of these core precepts.

Once a precept is adopted as true (there is no need for them to be true, just to believe them to be true is more than enough) the potential customer is compelled to live their life according to them. As brand anthropologists, we are able to use these powerful currents to ignite trial and loyalty of your brand.

It is quite simple to understand. If the customer is already using a competitor’s product or service, then there is no need to convince them of the efficacy of the category. For example, if they use a bank then there is not reason to convince them that using a bank is safe and smart. If they already choose to dine at a restaurant or to stay at a hotel, then there is no reason to convince them that great food or clean and reasonably priced rooms exist. If they currently use an office phone system, there is no reason to convince them that these systems are necessary, reliable, and easy to use. If they currently have an employee health plan, then there is no reason to convince them that the health plan you sell is reliable, flexible, and affordable. In all of these cases, these are examples of category benefits.

Once you understand that category benefits are indeed “table stakes” and are the minimum values needed to compete in any category, you are left looking for reasons for a potential customer to choose your brand. This is where PRECEPTS come into play — and they are more important than claims of effectiveness and product benefit (which are important too). They are important because they represent the fabric of your potential customer and if your brand represents these precepts, its importance is woven into the very fabric of the brand itself. Choosing differently would be akin to choosing a stranger over a family member or the familiar over the alien. It is where preference resides and yet many brands continue to fight for acceptance rather than preference. This is a mistake — acceptance is merely a result of reflecting the category” table stakes” and preference is where your margins reside.

Finding Your Brand’s Niche

This is a complicated subject to tackle in 900 words and if you desire to learn more, have a conversation with one of your brand strategists and they can explain all the nuances and implications of looking differently at your marketing challenges and developing a plan to create a lasting preference at the expense of your competition. For now, it suffices to say that if your brand returns meaning from your customers that represent category benefits or even levels of effectiveness (like best, fastest, and largest) you have danger signals all around you. These are not “brand” attributes (which are emotional and rooted in Precept) but product attributes which can quickly change colors as soon as a competitor is better, faster, or bigger. Training your customers or potential customers to choose in this way is a dangerous step and one that foretells future troubles. Finding the cues to preference is much more nuanced and difficult than understanding usage behaviors. But, it is vastly more powerful and will propel your brand to preference and market dominance.

About Face: The Value of Face-to-Face Meetings


As the business world becomes more impersonal, with automated phone trees and a dizzying amount of online tools, the bond between company and constituent becomes less personal. Increasingly, organizations are utilizing face-to-face meetings to unite with key audiences, communicate their messages and make an impact. As a result, meeting trends are leaning toward a more interactive and personal structure, as illustrated below:

• Incentive Programs
Rather than provide incentive trips to the same top-producing members of their sales force, companies are involving the entire organization by offering team awards that reward R&D, manufacturing and customer support. Incentive programs, traditionally recognized as simply a sales tool, are now considered an important part of brand building and marketing.

• Marketing Integration
As products and services come to market faster, companies cannot wait for year-end marketing meetings or large industry conferences to discuss tactics and strategies. Instead, companies are planning regular meetings and events to discuss and refine marketing plans. As a result, today’s marketing meetings and events are shorter in duration, smaller, more frequent and more focused.

• Return on Investment
As the economy gains ground, companies are spending more on meetings and conferences than in previous years, and a stronger emphasis is placed on ROI gained from meeting budgets. Many companies will “piggyback” meetings as a creative way to maximize meeting expenses. An executive meeting may be held in conjunction with a sales incentive program, allowing senior executives to participate in both. By combining meetings, companies can also leverage better hotel rates and other meeting contracts (transportation, airline, etc.).

• More Substance
Another trend can be defined as “less fluff, more stuff.” Meeting agendas are no longer packed with recreational activities or extended free time; rather, the bulk of the sessions are filled with content and training. Does this mean meetings are becoming lifeless and dull? No, there’s simply more need to place emphasis on finding smart ways to engage audience members with unique activities and team-building techniques that are instructive and fun.

• Clear Messaging
Consider a conference budget wasted if key corporate messages fall flat due to weak presenters, poor clarity or lack of defined expectations. Increasingly, companies are investing in presentation training for executive speakers or hiring professional speakers so that the message delivered is clear, concise and “sticks” with the attendees after the meeting has ended.

• Partner Participation
To underwrite the cost of meetings, companies are relying more heavily on their vendor and partner relationships. Firms are asking partners to sponsor portions of meetings or events, such as a reception or breakfast. This supports both partner and corporate interests; the vendor has the opportunity to get in front of company representatives, while the sponsorship dollars offset meeting expenses.

• Location, Location, Location
Finally, expect more interesting meeting locales. Companies are more often conducting meetings in Asia, Central America and Western Europe, connecting global counterparts and increasing the overall value of the meeting experience.

Do you remember the airline commercial in which a CEO hands plane tickets to each staffer following the loss of the company’s oldest client? Trends in the meeting world reflect a similar theme. While technology is indispensable to businesses, personal interaction, intimate settings and reinforcement of corporate messages and culture are back. Some may call it “old school,” but the companies embracing and leading the new meeting environment are those poised for the most success, internally and externally.

Minding Your Own Brand: Do You Come Here Often?


Developing a long-term customer relationship is very similar to dating. How you grab a prospect's attention is critical. Advertising, direct mail, public relations, or a website may be the first step towards starting the relationship, but don't let your marketing effort be another tacky pick-up line. What you say and how you say it will determine whether the prospect will be interested in starting a relationship or respectfully decline your offer to have a drink.

Getting the prospect to meet with you is only the first step in the relationship building process. Taking the relationship to the next level requires your marketing effort to make an impression that will create interest and have them call you the next day. However, it is not about tricking the prospect into being interested. Don't make them think your first date will be a magical evening of dining aboard your private jet and dancing in Paris when you know you are only able to take them out for fast food. Make sure you are able to provide one hundred percent of what you claim and that they are expecting an experience you can provide. Otherwise, there will be no hope for a second date.

You may spend significant resources developing marketing materials to spark interest and get you that first date, but don't forget that your prospects are also judging your company by everything you say and do. Once the prospect walks through your door, you must take great care to create an experience that resonates with the prospect and meets their expectations.

Instead of focusing on just marketing to develop the relationship, you must continually devote the resources necessary to examine all aspects of your business in order to determine what is adding to or subtracting from the experience needed to build a lasting relationship with a prospect. If you want this potential loyal patron to become more than a prospect, you need to do everything you can to ensure that they have an extraordinary experience each and every time they are with you.

If you develop a meaningful relationship based on trust while providing consistent experiences beyond expectations, your cash register will be ringing - just like church bells - to celebrate the relationship's success.

Visual branding is a great way to create big impact at a special event such as a launch, customer relations dinner or trade show.

Although some people think of this as a wasteful self-indulgent practice, shrewd marketers know that a focused visually branded event can leave a deep impression on customers and prospects amidst a flurry of competitors.

The general rule when it comes to visual branding is to do as much as you can within your budget, otherwise don’t do anything at all. There’s nothing worst then a ‘half-past-six’ job when presenting your corporate image.

Here are some creative ideas that we have come across:

STATIC BRANDING PROPS & DECORATIONS

Besides more standard branding tools such as posters, table stands, cocktail napkins, name tags, light boxes with logo, ice sculptures and backdrops, think of a visually aesthetic approach by using decorations that are coloured-themed to your corporate colours.

Such as; flowers, tea candles, gobo lights, buntings, ribbons, balloons, theatrical lighting, fish in bowls and lava lamps.

INCORPORATING BRANDING INTO FUNCTIONAL ELEMENTS

Brand all functional elements in your event. For example, if you are having a dinner launch, create dishes or cocktail drinks named after your brand and using your corporate colours.

Brand all printed information that guests receive. Brand or colour match all cutlery like plates, water goblets, napkins, cups, table cloths, table center pieces and chair covers. You can even choose cocktail snacks to reflect your corporate colours.

USING ENTERTAINMENT FOR BRANDING

A creative way to brand your event is to have different entertainment items that communicate your branding or message. Experienced corporate entertainers can customize and tailor their shows to your event.

Mingling entertainers like costumed performers and mascots in tasteful costumes accented with the corporate colours can help add to the atmosphere and further visually promote your brand.

EXTENDING YOUR BRANDING BEYOND THE EVENT

If you are considering giveaways and ‘goody bags’ for customers to take home, think beyond the usual pens, notepads, key chains and T-shirts. If you have the budget, think of custom labeled wine, packets of nougats or sweets.

For more economic alternatives, consider creative giveaways that people would actually use or show around.

Concept:Magic creates customized giveaways that are in the form of simple magic effects that highlight a brand. It is relatively low cost and everyone enjoys performing it for their friends and families.

The real goal and hope is that your celebrity endorser will boost the effectiveness of your marketing, product, or company campaign in a positive fashion. The value index, as we like to call it, is extremely important. Just look at companies that had deals with the likes of Kobe or O.J. when they ran into trouble. Disaster was and is always just around the corner if your celebrity endorser has the misfortune of having any form of legal trouble. Bad news for them only means worse news for you and your company. Over the years, millions of dollars have gone up in smoke because of a DUI, drug, or sex scandal. It just isn’t worth the risk. So, get to know your celebrity endorser and perform a thorough background check. You might be very surprised at what a simple Google search might turn up. Don’t let your celebrity endorser get caught with his or her pants down, as you will also feel like your pants are down.

I can recall all to well a situation where a major star was scheduled to appear at a major meet and greet. The deal was done, the athlete had been paid and was scheduled to appear the next day at a very large function. The company decided to fly the athlete in the night before. To bad the athlete decided to have a few drinks before going to his hotel. Instead of being in a cab he had a rented car…big mistake. He was picked up one block from his hotel for a DUI. He spent the night in jail. He was too embarrassed to attend the function later the next day so he decided to hop the next plane home and leave the company high and dry. Not only did they never recover their money, but the event planned around the celebrity was a disaster, to say the least. Make sure you know your celebrity and his or her tendencies.

It’s so amazing to me that what you see is not necessarily what you will get. Too many high profile celebrities are just full of themselves. It’s a shame but its reality. There are so many nice, decent, honest celebrities that one need not be subjected to a bad apple.

When considering the value index, another crucial point is to always ask for referrals. It may seem unnecessary but believe me, if you can’t get any it’s time to walk away. When speaking with referrals, make sure you ask all the pertinent questions such as: Are they easy to work with? Do they arrive on time? How do they dress? Were they cordial? Did they ask for money for doing little extra things? Were they at ease or in a hurry? Did they hang around after it was over, or immediately leave? Were they accommodating when asked for autographs? Did they make eye contact? and so on. Ask the questions, as you may be surprised at the answer. Above all, ask if they would hire that person again.

A good question that we ask the celebrity if we can’t get referrals is, who have they have done endorsements for in the past? We then do our own investigating by calling the company directly. It’s usually safe to say that if you can’t get referrals there have been problems in the past. If that’s the case, we advise you to keep looking until you find your perfect match. It will be time well spent.

There are a number of reasons for using a celebrity endorser. But also consider the value proposition of the endorser as a key to your success. The reason you are using the endorser is probably one of the following:

• Credibility

• Adding new ideas to your brand image

• Celebrity can add his or her values and refresh the brand

• Celebrities draw attention

• Rising above the competition

• PR possibilities

• Way to convince customers about a product or company

• Adding value to the product or company

• Building a solid back end proposition through extended use

There is one reason to use a celebrity endorser that I don’t want to add to the list above, as it is often the early signs of a company in trouble. That reason is desperation. Companies often times will think that a celebrity endorser might pull them out of the hole. Unless it is a brilliantly conceived marketing strategy, the chances for failure are greater than the chances for success. Sometimes, if a product cannot stand on its own, companies are lead to believe that a celebrity might produce magic. Usually that is not the case as the product or company is already too far gone to hope that a last minute advertising bailout will make a difference. There are certainly instances where a celebrity has come in and immediately turned things around, but unless you can afford Michael Jordan or some other big name, failure is more realistic than success.

The bottom line is, don’t count on the celebrity endorser being your savior. The celebrity endorser can certainly enhance most businesses with a well thought out plan, but to use one as a savior may be asking to much from the celebrity and isn’t fair to the celebrity or to the company. Miracles are hard to come by.

Beware if you are desperate.