Curator of Chic

Ginika Agbim O'Kelly's tumblr Blog on Branding

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Leadership Branding and the Woman I Want to Be

This quote from Diane von Furstenberg resonates with me. Business school has given me a unique opportunity to truly reflect on my past experiences, my abilities and interests, and the kind of impact I would like to have on society. As an MBA student, I am not only gaining analytical skills and strategic thinking, but I am also thinking about my leadership style and the person I want to be as I build my career.

In addition to having the space to reflect and think, I am also listening to feedback and other people’s journeys. I’ve been fortunate to speak with entrepreneurs, consulting partners, merchants, strategists, professors, venture capitalists, and engineers to learn about the experiences and decisions that brought them to where they are today.

Through these conversations, I have learned that a combination of intention, hard work, and luck has helped these people succeed. 

As much as having a clear plan is comforting, I am learning to embrace opportunities that align with my values and the woman I want to be. Reflecting on this “woman” and my values helps me prioritize feedback, opportunities, and time.

Two things that I value are openness to new cultures and self-expression. These values have led me to organize an African fashion show and travel to two new-to-me countries. This year I have found that the more I intentionally partake in activities that align with my values, the more opportunities come my way.

When I graduate next year and re-enter the working world, I don’t want to be just another MBA. Instead, I want my brand to reflect my interests, personality, heritage, work ethic, and values.

The woman I want to be is bold, eloquent, generous yet fair, firm yet supportive, spiritual, and cosmopolitan. She celebrates the successes of others while working hard to make her own dreams a reality.

I may not know exactly how I’ll reach this state, but I do know that being intentional and open can help me succeed.

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Good Intentions and #Social Media

One of the big themes I’ve learned in my branding class is that companies and consumers co-create a brand’s identity. Today, with the spread of personal computers and the internet, everyone has a voice - including brand evangelists and critics. While these stakeholders would previously just share their thoughts in niche forums and on their personal websites, social media has enabled people’s thoughts and opinions to “go viral” and reach others around the world quickly.

This creates a unique opportunity for brands to engage with present and future customers. However, when brands fail to think things through, their efforts to engage with consumers through social media can go awry!

Fashion and consumer-centric brands are not exempt from getting it wrong sometimes.

American Apparel faced backlash when it used Hurricane Sandy to make a few dollars. At a time when public transportation was shut down, people were scavenging for necessities, finding a good deal is the last thing on their minds. Is giving a discount a nice thing to do? Absolutely; I love a good deal. But the tone and timing were incentive.

During a horse meat scandal in the UK, Tesco tweeted that they were “off to hit the hay”.

Oops!

The problem with these campaigns is that they ignored public sentiment. In other cases, brands fail to consider what happens when an “innocent hashtag” gets in the hands of millions, who are emboldened behind their screens to say whatever they please.

Brands should not avoid social media or Twitter. Rather, they should be aware of different things that could go wrong. Hashtags should be carefully considered to ensure that people cannot interpret them in negative ways. Also, consider the cynics. What could they use your hashtag to say? When choosing hashtags, test them with people nearby. Reconsider hosting a Twitter Q&A session if your company or industry is facing a crisis (#AskJPM, anyone?).

How can brands engage with consumers using social media? Take a note from Qdoba’s book by hearing from your customers in a controlled way. Consider making a viral video, hosting a contest, or taking a poll.

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Growth vs. Alienation: Burberry’s Path to a Unified Brand Identity

When consumers think of Burberry, one image comes to mind. The check. This association was especially strong in the 1990s and early 00s when the iconic plaid pattern was ubiquitous across the globe. By focusing on speed and circulation rather than on strategy, long-term consequences, and a unified vision, the 160 year-old luxury company found itself in quite a bit of a mess from a brand identity perspective.

Though all brands should remember that consumers and societies help co-create brand identity, brands should also consider the notion that their decisions also impact brand perception in the market. It might have been profitable for Burberry to enter numerous licensing deals with manufacturers back then, but by relinquishing this much control, Burberry risked losing the customers who had been committed to the brand for years.

During the late 90s and early 00s, CEO Bravo sought to rein in licensing deals and re-position the brand for sustainable growth, without alienating its core customer. But who was Burberry’s core customer?

Was the customer aristocratic? wealthy? practical? traditional? cosmopolitan?

How does the target customer impact Burberry’s strategic decisions and the way it leverages its brand symbols such as its British heritage, iconic trenchcoat, and easily identifiable check?

Under Bravo’s leadership, the brand operated Burberry London, Burberry Prorsum, Burberry Black, Blue, and Thomas Burberry in certain markets, and was considering introducing Burberry Brit through a fragrance. While this approach provided solutions to different customer segments, the team still needed to consider the impact of so much choice on consumer behavior. With so many options, how can a customer know which line is best for him or her? Would consumers downgrade their purchases or switch to another brand with a clearer vision?

In 2015, CEO Bailey, announced that Burberry was unifying all of its lines under the Burberry label. This decision simplifies operations, branding, and consumer choice. The question that remains, however, is who Burberry will attract now? Will Burberry price items high or low? Will product quality and manufacturing be brought to the same standard across product categories? How will that elusive core customer respond?

These are all important questions that Burberry’s leadership should consider as it continues the legacy of Thomas Burberry.

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A Note on Managing Brands

                            Nike ad from 1980s compared with ad from 21st century

Brands often face tensions between controlling their meanings over time and controlling their meanings across stakeholders. This is the essence of brand manifold, and some brands have lost their way while others have succeeded. For fans, employees, and consumers, Nike represents high performance and winning. By endorsing sports teams and athletes throughout the years and even naming itself after the Greek goddess of victory, Nike has reinforced the meaning of its brand over time.

                         YSL ad from 1966 compared with YSL ad under Hedi Slimane

The difference between a brand like Nike and the brand of a fashion house is the presence of a creative director who sets the tone for the brand. Every time a major fashion house announces a new creative director, people are quick to ask if this new designer will maintain the legacy of the house’s founder while adding a unique perspective to keep the brand modern and fresh. That’s no easy feat, and some creative directors ruffle a few feathers.

             Ray Ban ad from the 1960′s compared with an ad from the 21st century

Not every brand messes this up. Consider these Ray Ban advertisements. In these advertisements, Ray Ban has maintained the critical elements of its brand. The advertisements are somewhat minimal and the subjects appear cool and collected. Additionally, the “Never Hide” campaign of authenticity and boldness reflects the brand’s heritage as a sun ray blocking solution for brave U.S. Army Air Corps pilots. To consumers, Ray Ban represents style and courage.

In order to manage brand manifold, brands should understand that brand meanings are co-created with customers, and should retain the core elements of their brands that resonate with consumers, employees, and other stakeholders. In today’s connected world, brands should also consider how their meanings translate in different cultural contexts.

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So You Think You Know Wine?

A few years ago, I attended a wine tasting at a friend’s birthday party. The knowledgeable (and patient) sommelier presented us with different varieties and educated us on aspects of wine that matter (legs, body, light, etc.). It was a blast and we all bonded over our new knowledge of the complicated subject of wine!

But how do I choose the wine that I’ll bring to a dinner party or drink at a bar?

Consumers have a complex relationship with wine. Studies have shown that our perceptions of wine do not reflect reality. We perceive wines from France to be superior to wines from America. We think that more expensive wines taste better than cheaper wines. I tend to buy wines with sleek or fancy packaging. It’s not just people like you and me who are susceptible to these biases. Even the professionals (see: the Judgement of Paris) show that our biases when it comes to which wine is better, don’t make much sense.

Given these biases, winemakers have to decide how they should position themselves to appeal to capricious and disloyal consumers.

In 2006, Concha y Toro, a Chilean wine portfolio company, was determining its international growth strategy. It faced two strategic options:

“bottoms-up”: gradually transition from the low-end market to the high-end market by investing in marketing and advertising, or

“top-down”: exploit the success of its more prestigious brands to grow in the lower-end market.

Of these two paths, a top-down strategy makes more sense for Concha y Toro. First, the benefits of the top down strategy exceed those that can be achieved in the bottoms up path. With more products, Concha y Toro would have stronger bargaining power with suppliers and distributors. This can improve margins and allow Concha y Toro to have more control over its supply chain.

Second, since consumers rely on price and other surface variables to select a wine, higher-end wine drinkers may not care that Concha y Toro also makes cheaper wines. Concha y Toro could use distribution channels to differentiate its products and reduce threats from cannibalization.

When making strategic decisions, winemakers must combine consumer behavior insights with economic analyses of their alternatives to get a complete picture of the impacts of their decisions. Wine purchases are emotional and subtle cues and perceptions make all the difference. 

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Why do some products spread while others fail to gain traction?

Sliced peanut butter.  Silver bandages.  Satellite radio.  Smell machines.

What do all these things have in common? Aside from beginning with the letter “s”, these are all innovative ideas that could revolutionize their respective categories...if consumers catch on and are willing to pay for them. This week, I review descriptions of these four products and services from the early 2000s, to predict which could succeed in the marketplace. Satellite radio is still around today, so I’ve used it as a reference point to understand what makes products catch on.

Drawing from “Rogers’ Five Factors” for diffusion, I discuss key reasons that we still hear about satellite radio today.

Relative advantage. This factor considers the perceived net benefit of an innovation. As long as the marginal benefits minus marginal costs exceed the net benefits of the traditional offering, then an innovation has a higher chance for adoption. Compared to traditional radio that included 20 minutes of commercials per hour, spotty reception, and limited options, Satellite radio promised a better service. This new service would include commercial free radio, consistent signals, CD-quality audio, and a variety of channels, all for a monthly subscription fee of about $156 a year. The perception aspect of relative advantage matters and consumers are more likely to change their behaviors if their perceptions about an innovation are net positive compared to their experiences with the status quo.

Compare this service with the silver bandage. The silver bandage innovation might be superior to traditional Band-Aids, but if the majority of target consumers are not familiar with the healing properties of silver, then they may not perceive the innovation to be worth the additional cost.  

Complexity. Complexity relates to relative advantage in that consumers may not appreciate the value of innovations that they do not understand. Makers of silver bandages would have to spend a significant amount of money to educate consumers of the benefits and reduce the perceived complexity surrounding the product. Equally, makers of iSmell not only have a name choice problem, but they will also face challenges convincing consumers that they should enhance their visual experiences with scents.  

Compatibility. Compatibility matters because inertia exists. Sirius and XM sought to revolutionize radio, but they did this by collaborating with radio industry heavyweights and selecting a conduit relevant to their target consumers. By partnering with car manufacturers to provide satellite radio in cars and include subscriptions in the financing process, Sirius and XM reduced the barriers for adoption. Starting in 2004, car buyers who wanted satellite radio did not have to change their purchasing process.

Similarly, sliced peanut butter was a concept very similar to American sliced cheese. Consumers associate cheese with sandwiches and have developed the habit of placing a slice of cheese on bread. Learning to do the same thing with another sandwich ingredient, peanut butter, should not pose a problem for the prospects of adoption. However, it doesn’t really exist today.

So what?

Satellite radio succeeded while, the sliced peanut butter product flopped. It had an advantage over traditional peanut butter, was similar to sliced cheese, and it was not difficult to understand. Clearly, some other factors were at play that kept consumers from making the switch.

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Beer Wars: How Brand Attributes and Meanings Influence Advertising

In 1995, Heineken’s President in charge of importing the beer to the US market made a profound statement: “People don’t drink beer, they drink marketing”. This statement makes sense. Those who choose to drink do so to fit in, feel a buzz, celebrate an achievement, or enjoy their time off from demanding work. Because of these psychosocial needs, beer drinkers accept the bitterness, hangovers, and possible weight gain that comes with drinking beer. They know what they’re signing up for at the beer store. Yes, please!

Given this captive audience, how can a beer brand convince consumers to choose it over the other options? This question is resolved by lifestyle marketing and advertising. Instead of focusing on the beer’s taste and other features, these ads focus more on the activities and personalities of their consumers.

Corona and Heineken, two beer brands discussed in a Harvard Business School case, have distinct brand identities and attributes that strongly influence the way they present themselves to the US beer market. The commercials below demonstrate the differences between how these brands see themselves and their core consumers.

Corona Commercial

In this commercial, Corona conveys a sense of freedom, relaxation, and lightness. There is a sense of aspiration since the slim actors, wearing business casual attire are traveling to a beach vacation. Through its ad, Corona is communicating that people who want to feel relaxed and free drink Corona. Compared to the consumers in the Heineken ad below, these consumers work hard but not too hard, and make sure that they take time to relax every now and then. 

Heineken Commercial

In contrast to the Corona commercial, Heineken’s commercial conveys a sense of importance with a dash of humor. When the rack of Heineken breaks, everyone – from boxers to surgeons to men on the street – stops what they’re doing because they suddenly feel sad. Here, Heineken sends the message that no matter who you are and what you’re up to, Heineken matters. In fact, the commercial ends with the statement “It’s all about the beer”. We all know this isn’t true, but such a statement reveals Heineken’s feelings about its identity and thoughts about its consumers. The ad shows that Heineken consumers are busy people (typically men) who are serious about their beer.

Ultimately, through lifestyle advertising, brands tell consumers that if you identify with (or aspire to) the meanings and attitudes embodied by the brand’s advertising, then you should consume its products. It’s a perfect fit. Cheers!

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Lost in Translation: Brand Perception and Customer Segments

What happens when the positive perception a brand has with one customer segment negatively impacts the way that another customer segment perceives the brand?

This was the case of Black & Decker (B&D) in the 1990′s. Then, the B&D brand was strong amongst consumers buying power tools for personal use (Consumer segment) and corporations purchasing tools for their employees (Professional-Industrial segment). This strength led to dominance in the power tools market and great financial success for the then-73 year old company.

In the Harvard Business School case written on this time in B&D’s history, managers began to worry about the rapid growth competitors such as Japan’s Makita experienced in a third customer segment, Professional-Tradesmen.

Ultimately, after conducting field tests and ruling out that B&D’s products designed for tradesmen (carpenters, plumbers, electricians, etc.) were technically inferior, B&D realized that it had a branding problem. While many consumers were aware of the B&D brand, tradesmen didn’t want to be associated with B&D products.

What’s wrong with B&D?

Channels: Makita, a top brand in Japan, entered the U.S. market at a time when Home Centers (e.g. Home Depot) were growing in importance among the Professional-Tradesmen segment. Meanwhile, B&D had a stronghold in smaller channels – farm outlets and warehouse home centers. This channel choice provided room for new brands to steal share.

Color: Manufacturers often used color to distinguish higher end power tools designed for the Professional-Tradesmen segment from lower end products designed for the average consumer. B&D did not follow this rule and used the colors charcoal and grey for both professional and commercial grade tools.   

Name Brand: When tradesmen used unlabeled B&D tools, they rated the equipment highly. Yet, social norms on the work site meant that if a carpenter carried a B&D tool, he or she would be the laughing stock. Tradesmen could not believe that equipment used by a brand better known for DIY projects could handle the needs of a remodeling site.

What should B&D do?

Given its predicament, B&D could either:

limit its focus to the two customer segments who perceived the B&D brand positively – Consumer and Professional-Industrial,

create a sub-brand that still leveraged the B&D name,

stop using the B&D name on products aimed at the professional-tradesmen segment.

Of these three options, B&D should employ sub-branding, color, and channel to revamp its positioning and share of the Professional-Tradesmen customer segment. First, color and packaging signal that this line is different from the traditional charcoal and grey offering B&D previously presented. If a construction worker quickly glanced at another using the revamped product, he or she would not know that it was B&D. Second, the sub-brand could appear more prominently than the B&D name and would allow the new product to have a better shot of being picked up from the shelves. Third, B&D could host continuing education workshops for tradesmen in collaboration with retailers to showcase its products and re-establish credibility with this segment. By taking this multi-pronged approach, B&D can strengthen its positioning in the Professional-Tradesmen customer segment.