#mitsloanbranding

[aurac-castillo-blog]

It is difficult to find a brand that despite being for-profit, has a social and environmental component. Similar to “Better World Books” I was pitching a startup to judges in the Clean Energy Prize that had a social component but it was a for profit venture. The judges did not believe in it, because when co-founders focus on the social impact side, they will start making poor economic decisions for the profitability of the company, such us not optimizing prices or in the case of BWB giving away equity to the NGO partners.

So using your brand to persuade consumers to buy from you or donate your product when you are making profits out of it needs careful consideration and may be a controversial marketing campaign, even more when it is not very clear that E-books are more environmentally friendly than printed books. 

Transparency becomes a fundamental partner here. For example, BWB’s website has a tiny mention to its partner at the bottom of the page which does not seem to highlight the importance of using their brands to collect book donations which ultimately is the engine of their business model and it is widely used as part of their advertising campaigns.

So when using a social brand for profits, make sure that you clearly state how is your company helping other social causes, let them be protagonist of your campaign, and share the results with absolute transparency of what is the benefit. Let’s look at TOM’s advertising campaign “one for one” (whether I agree or not on the benefits) you have to give credit to the clarity of the benefits and easy concept, as well as how their social component becomes a protagonist in all campaign materials.

[aurac-castillo-blog]

From emotional to sustainable relationships with brands

My main takeaway from the readings on “Ignore the human element of marketing at your own peril” is that successful companies in branding are the ones that connect their brand with their mission, and are consistent in the messaging to customers and stakeholders. It is important that once a company realizes that is located in a particular side of the brand sustainability map, it takes actions to switch to a sustainable relationship, and if it is already located in the desired quadrant, keep the continuous improvement to stay there.

The impact of social media in branding has been huge and has allowed consumers to become advocates of their favorite brands which has immense value for companies that do good and provide great products and service. For example, I like shopping at Tjmaxx, and will promote them every time I am happy with my smart purchases! I found incredible products at amazing prices. However,  I wish they could improve their operations and provide a better customer service. That will definitively move them from an emotional to a sustainable relationship with me!

[aurac-castillo-blog]

Where is your check? Burberry

Incredible recovery of the brand, coming from proliferation in items that probably did not carry the values and expression of the original brand. Having the check everywhere clearly diminished the power and exclusivity of the brand.

Despite attracting high income levels, it increases the market size by making it accessible to everyone in that category: all ages, gender and races.One of the few brands that successfully reaches both young and older generations through is “aspirational but also functional” concept. Also attractive to both male and female. Burberry’s advertising campaign invites more to the youth generations nowadays. Perhaps to engage its customers since a very young age? or to create a longer life cycle of its products? 

[aurac-castillo-blog]

The evolution of Kenzo Jeans

When I read the article about multiple dimensions of a brand, the first brand came to my mind is Kenzo Jeans. This is a Colombian clothing store that started 25 years ago with only jeans at a very modest price. Their stores were like massive warehouses where it was very rare to see exhibitions, you could only see shelves full of jeans. I was little at the time, but I remember that because of the quality and variety, I really liked the brand. This is how their advertising looked like few years ago, when they started to evolve.

This is an example of brand mainfold. What this brand meant to consumers in the past (basic clothing) is totally different to its meaning today: style, diversity, and fashion. I followed the brand very closely and saw it converting from a small little duck to a swan. Obviously prices went dramatically up, and their stores are now located in the biggest malls in the main cities.

I imagine the huge switch of the company operations at the time. Coming from an easy, likable model of warehouses with basic clothing, to move to what they are today: a renewed brand, fresh, young, more expensive and exclusive. This success is probably a result of managers able to understand what a brand can embody.

Source pictures: https://www.kenzojeans.com.co/lookbook

[aurac-castillo-blog]

Is a good wine a signal of exclusivity?

Despite their decrease in popularity, European wines still provide a sense of precision and high quality that is supported by well known wine tasting experts. I particularly liked Spanish wines (because my Spanish husband will protest if I buy other wine origins) which evoke the times of kings and queens having wine as an indulgence.

But in the case of Concha y Toro, I believe the CEO needs to define a clear strategy for its company. Whether he wants to colonize the premium market and compete with Old world producers, or continue to sell wine for the masses. Doing both, like he has done up until now, with a high level of performance will be very difficult, also making its operations, marketing and distribution activities very complex. Having acquired the quality and publicity required for bigger markets, I vote for “bottom-up” strategy supported by a consistent marketing campaign. For example, the fact that the label “Concha y Toro” still appears in bottles of his cheaper brands could prevent the company from reaching exclusive markets and higher margins. Right now there is already significant variety in the cheaper brands like Frontera and Casillero del Diablo that makes it harder for the consumer to feel the value or difference in each.

Pictures from

http://034988b.netsolhost.com/beer/products/concha-y-toro-frontera-1-5l/

http://www.consultingrehab.com/2010/08/22/wine-tasting-at-concha-y-toro/

http://saboresenelmundo.blogspot.com/2012/03/mi-primera-vez-mi-primer-vino.html

[aurac-castillo-blog]

I believe the order of rapid and broad diffusion for the 4 products presented is:

1) The silver screen

2)iSmell

3)Satellite radio

4)Sliced peanut butter

I chose the silver screen because it clearly shows a benefit against its competitors (relative advantage) by reducing the number of things you applied when injured (antibiotics/analgesic+bandaid) and combining them; therefore, making it simpler and easier for the consumer, and saving an initial step to doctors (low complexity). It seems a product that people can acquire over the counter, so hopefully not significant FDA paperwork. 

It is also a high market for children, and consequently their parents who probably have higher willingness to pay (since they always want the best for their kids - compatibility). Giving free samples in schools, or pharmacies (trailability and observability) seems natural in this type of product. The company seems to have a first mover advantage in a market where customers do not switch brands very often. This is partially an experienced good, so early adoption will give more people the opportunity to try it, and inevitably create brand attachment if the experience is good.

I believe the satellite radio will have a hard diffusion period since there are already other great options such us Spotify, or Pandora accesible from your phone and that provide the same service. The sliced peanut butter does not really have much innovation and the iSmell sounds like a great product but may be harder to penetrate the market given the new technology and higher uncertainty in terms of generating/requiring a network effect to be successful.

[aurac-castillo-blog]

Efforts on advertising, careful pricing and market research: key players in branding

The Corona case confirms that every brand is vulnerable at any time, even the strongest ones. Heineken was a leader brand and a market sales leader for  many years in the US and underestimated the danger of a Mexican player, most likely with less technology and sophistication but who did a remarkable job in identifying the needs of its target customer and allocated all efforts on it. The momentum to enter the US market was also well calculated by Grupo Modelo and demonstrates how much it was following the demographics, needs and acquisition power of the initial customer, the Hispanic population.

A huge success for Grupo Modelo was to find local champions in foreign countries, and to relocate talent in order to maintain the key aspects of the Mexican culture and of the company itself that influenced the success in those countries. On one hand, it maintained a good level of control and consistency on marketing and operations in those foreign locations, and on the other hand, it created a connection of the brand with Mexican and LatinAmerican nationals living abroad. The case made me reflect about other brands that are also premium abroad but very affordable in their countries of origin, like Zara the clothing store, that creates a sense of pride for those Spaniards living abroad naturally converting into the first promoters of the brand despite finding a premium price.

The case also evidenced how difficult is to re-brand a product, or to recover from a brand damage. For Heineken it took several years, different marketing directors and significant investment to have a competitive brand again, in a market that was moving very fast and did not allow for that time.

Finally, the effect of not increasing pricing while other competitors did, and to increase advertising at the same time clearly influenced the success of the Grupo Modelo brands in the US. It created attachment to the brand for a certain period, making people less willing to switch to other beers when prices would rise again.

[aurac-castillo-blog]

http://mitsloanbrandingsectiona.tumblr.com

[aurac-castillo-blog]

Efforts on advertising, careful pricing and market research: key players in branding

[aurac-castillo-blog]

Efforts on advertising, careful pricing and market research: key players in branding

The Corona case confirms that every brand is vulnerable at any time, even the strongest ones. Heineken was a leader brand and a market sales leader for  many years in the US and underestimated the danger of a Mexican player, most likely with less technology and sophistication but who did a remarkable job in identifying the needs of its target customer and allocated all efforts on it. The momentum to enter the US market was also well calculated by Grupo Modelo and demonstrates how much it was following the demographics, needs and acquisition power of the initial customer, the Hispanic population.

A huge success for Grupo Modelo was to find local champions in foreign countries, and to relocate talent in order to maintain the key aspects of the Mexican culture and of the company itself that influenced the success in those countries. On one hand, it maintained a good level of control and consistency on marketing and operations in those foreign locations, and on the other hand, it created a connection of the brand with Mexican and LatinAmerican nationals living abroad. The case made me reflect about other brands that are also premium abroad but very affordable in their countries of origin, like Zara the clothing store, that creates a sense of pride for those Spaniards living abroad naturally converting into the first promoters of the brand despite finding a premium price.

The case also evidenced how difficult is to re-brand a product, or to recover from a brand damage. For Heineken it took several years, different marketing directors and significant investment to have a competitive brand again, in a market that was moving very fast and did not allow for that time.

Finally, the effect of not increasing pricing while other competitors did, and to increase advertising at the same time clearly influenced the success of the Grupo Modelo brands in the US. It created attachment to the brand for a certain period, making people less willing to switch to other beers when prices would rise again.

[aurac-castillo-blog]

How should big brands manage different  target customers and/or product lines? Black&Decker

After being the pioneer in the industry of power tools in the US, Black and Decker (B&D) had consolidated a strong brand among consumers. However, there needs to be careful consideration in the following two scenarios that appear to be risky in the case:

1)Creating different lines of products such as the household products. It is difficult that the same brand appeals positively to two very different (almost opposite) customer targets: on one hand, the stereotype of a strong/technical worker such us electricians, or carpenters, and on the other hand, housewives (most likely women) which are probably recognized by being delicate and loving.

2)Having weak/undeveloped products that are part of the product line. There were 4 families of products (miter saws, routers/trimmers, belt sanders and jig saws) that did not perform at a good level compared to other products in the same category. The problem with this is that the same customer uses all of them, therefore, the ones with poor quality may be negatively affecting the entire segment or preventing customers from buying other B&D tools.

Despite a strong awareness of the brand (98%). These two scenarios could have led to the association of B&D with weak performance, not durable, not high quality and not among the best brands. One alternative could be to create a total new brand for the household products, and invest in developing the highest quality of those 4 products that are not strong in the portfolio today.