I have a dream


This entry is dedicated to Dr. Martin Luther King Jr.

http://www.youtube.com/watch?v=V57lotnKGF8&feature=player_detailpage

 

 

H. Schultz on the Future of Starbucks


Funny – while I never acquired a taste for Starbucks coffee, but I have a great deal of admiration for Howard Schultz.

He personifies my marketing philosophy incredibly well: Clear Vision. Smart Strategies. Practical Tactics. Howard Schultz has taught the world of marketing a lot about brand building and his Autobiography  (Pour Your Heart into it: How Starbucks Built a Company One Cup at a Time) is a must read for anyone who takes the art and science of brand management seriously. Happy Anniversary!

1-18-2011

Will your brand flourish or wither in 2011?


1-11-2011

As an Advertising Director I assume a moral brand management obligation with my clients that I take very seriously.

Promote their brand ethically & aesthetically, and defend it from stupid people.

Over the years I’ve learned that the greatest danger to brand integrity does NOT come from the out-side, it comes from stupid, myopic brand management aspirants who will do almost anything to make their quarterly numbers. Short-sighted MBO tactics can suck the lifeblood out of a vibrant brand and hobble its full market potential.

Consider this perspective on brand management by Mr. Warren Buffett:

What creates a high Gross Profit Margin is the company’s durable competitive advantage. It allows companies the freedom to price products and services well in excess of their Cost of Goods Sold. Without a competitive advantage, companies have to compete by lowering the price of the product or service they are selling, which of course lowers their profit margins and therefore their profitability. It also lowers their ability to raise salaries and give big bonuses, and it diminishes the companies’ capacity to expend capital on new businesses and to survive a recession.”

—     Warren Buffett’s Management Secrets, Mary Buffett & David Clark

Now consider the impact the following behavior on the long term health of your brand:

  • Discounting. Think Boxing Day sales.
  • Discontinued product lines. Think TV shows.
  • Having your customer service people tell prospective customers to wait for the new one because the previous model isn’t worth having. Think Windows 7.
  • Waiting endlessly for (live) customer service. Think Bell Canada.
  • Receiving service up-sell calls at home while you’re having dinner. Think Banks.

When brand managers discount, discontinue, misrepresent, over promise, mishandle transition periods, under-staff and under-value customer service, they reduce the net (intangible) accrued brand value or brand trust that has been developed for years. Usually at a rate that the current year’s ‘constructive good-will building activities’ are not able to offset.

Strong brands have the same moral fibre that we respect in great leaders. 

But not all products and services are brands - even if they look nice.

Brands have what Warren Buffett and I refer to as a durable competitive advantage.

They are the times, the places, the things that we hold dear and that change little over time. Like good friends they grow with us, share with us – and importantly respond to us.

Products compete on price and availability. A nice package does not make it a brand.

While any careless Brand Manager can turn a great brand into commodity product (think Eaton’s or The Bay), in less than 10 years, only a really insightful product manager who has the luck, experience, raw product potential and the correct timing, can turn a commodity product into a solid brand.  Think of your own example here. Put it on your wall and emulate it.

For 2011 my free advice to you is this:

1.      Choose your path wisely

2.      Plan your work and work your plan

3.      Get rid of brand liabilities: those who are not a brand steward \ or don’t get it.

The victims of your good intentions


This is an article that hits incredibly close to home because Charlie, my creative muse was found on the street – lost or abandoned – on a cold January night here in Toronto eight years ago.

1-6-2011

Rover and Kitty might have seemed like the perfect presents during the mad rush leading up to Christmas, but each year, animal shelters across the country prepare for a mass return of unwanted pets in the post-holiday season.

Photograph by: David Paul Morris, Getty Images

TORONTO — Rover and Kitty might have seemed like the perfect presents during the mad rush leading up to Christmas, but each year, animal shelters across the country prepare for a mass return of unwanted pets in the post-holiday season.

“It’s a common problem unfortunately at Christmas time,” said Michael O’Sullivan, the executive director of the Humane Society of Canada. “It’s a real example of the best intentions gone wrong.”

The society hears about an influx of animals at shelters, rescue organizations and humane societies across the country every January. Fortunately, the increase isn’t as great as it used to be thanks to a number of public awareness campaigns that discourage gifting pets during the holidays. Some shelters even have strict policies prohibiting gift adoptions. O’Sullivan said people don’t always realize that all pets — whether it’s a dog, cat, turtle, rabbit, guinea pig or bird — require not only affection, but time and money. “I often liken it to a stranger showing up at your doorstep with suitcases. He’s going to live with you for 15 or 16 years and he’s saying: ‘Where’s my room?’” he said.

“It’s kind of heartbreak all around if you don’t talk to the people you’re giving the pet to first.” Animals also aren’t a “one-size-fits-all” gift; some pets require more exercise, food and medical care than others. Some dogs live as long as 18 years, while cats have an average life span of 20 years. Instead, O’Sullivan suggests those wanting to give a pet should instead give a preview gift of a leash, food and water bowl for a potential dog owner or a litter box for a cat owner and then head into a shelter in the new year. Alison Cross, a spokeswoman with the Ontario Society for the Prevention of Cruelty to Animals, said it’s hard on the animals when they’re returned or abandoned by new owners who suddenly find they have less time to care for them when work schedules gear up again in January. “The reality is that pets end up suffering because they have to transition from one home to another, which is quite stressful for an animal,” she said.

Many times people fall in love with an animal in a pet store and rush to purchase, unaware that the animal might not be up-to-date with vaccinations or spayed or neutered — leading to a heavy cost for the new owners.

Cross said those unable to care for their new pets should first try to reach out to their social networks and see if any of other friends or family are seriously looking for an animal companion.

At the Edmonton Humane Society, the number of animals that arrived at the shelter doubled in 2010.

“It’s terrible for the animals to move around so much like that,” said spokeswoman Shawna Randolph. “An animal needs to be in a loving home, no matter what its age.”

Randolph said the increase in animals at the shelter isn’t limited to the holiday season, largely due to a public campaign the society runs promoting half-price adoptions of cats and rabbits starting the week after Christmas.

© Copyright (c) Postmedia News

Why Brand Continuity Matters


For years I’ve argued that brand continuity is important, and for years franchisees have told me it isn’t. Here are two recent examples that illustrate why brand continuity matters.

Example #1 :: Sobeys

I lived in Winnipeg for two years and shopped at Sobeys because 1. I could walk there, 2. it was a clean bright store,  3. my father-in-law recommended it, and 4. it also had a pharmacy. I came to look forward to my frequent small shopping trips. Better yet they had a number of products that I came to love. I’m not a foodie, but Sobeys did it’s best to make me one. So now I’m back in Toronto – missing my local Sobeys and some of those special treats. I drove to the nearest one, only to find it small, dingy, unfriendly and worst of all – the treats I loves to buy in Winnipeg were nowhere to be found in the Toronto store.  The result: i will not go back to Sobey’s in Toronto and I’ll share my brand disappointment with others.

Example #2 :: Days Inn

Charlie (my dog) and I used to drive to Winnipeg and back a few times a year. When my wife came along we made it a road-vacation. we set a leisurely pace and overnighted 4-5 times enroute. Over the years and miles we’ve found that some hotels and motels had no-dog policies, others charged as much as a 2nd (or 3rd) human occupant, and others put you up in their ‘smoking’ rooms. Then there was Days Inn. So far no matter what route we have taken from Toronto to Winnipeg and back, Days Inn was always happy to put up Michelle, Charlie and me for a $10-$20.00 premium in a non-smoking room. Given the rooms are large, comfortable and equipped with wireless internet and a desk, they’ll continue to get my business and my referrals.

As Holiday Inn used to say in their ads: “The best surprise is no surprise”.