mit sloan branding: around the world & back again

[dredelmeier]

Threats to 5-Hour Focus

By introducing 5-Hour Focus, we are creating a sub-brand of 5-Hour to appeal to and build trust in a new customer segment. However, the introduction of a new brand does not come without its threats. The threats to the 5-Hour brand (5-Hour Focus & 5-Hour Energy) are listed below:

Customers react negatively to consuming the same ingredients in both product (Focus and Energy), resulting in negative word of mouth

Loyal 5-Hour Energy customers feel betrayed by the introduction of a new brand with a more professional image

"Safer," "healthier," energy shot disrupts the market

Health scares are publicized, harming the energy drink category as a whole

Red Bull (leading competitor) responds similarly by refining the image of the Red Bull energy shot

Starbucks (or another leading coffee company) comes out with a portable, small, convenient caffeinated "shot." This could be particularly threatening due to Starbucks' positive brand image with professionals.

New retailers refuse to sell 5-Hour Focus because it contains the same ingredients as 5-Hour Energy

[dredelmeier]

During my first week at work, a communications professor from Brown spoke to my team about the importance of body language. She told us that women are likely to find themselves nodding while listening to a speaker not because they agree, but because they want to acknowledge that they are listening. She told us to be cognizant of this nodding, as it becomes such a habit that you often will "agree" with something that is very much against what you believe - your personal brand. Her advice really resonated with me, and I now find myself much more aware of how I communicate through body language. Amy Cuddy's talk is a must watch for everyone when considering how you are perceived not only by others, but also by yourself. If you haven't yet seen it, do take a look - you will become a stronger, more confident communicator, speaker and leader as a result!

[dredelmeier]

My Friend's Perfect Boyfriend (Hint: He's on Snapchat)

We've all heard about the power of social media in spreading your message. Facebook lets you update your (thousands of) friends about your latest vacation, relationship status, and professional accomplishments. Twitter allows you to quickly send and receive the latest news from your rather extended social circle. Instagram provides a platform for sharing your favorite photos with the perfect filter.

And then there's Snapchat. Snapchat is supposed to let you send photos for your friends' enjoyment for a mere matter of seconds. Unless you're Molly, and your Snapchats must be screenshotted for the world to see.

A former colleague created the perfect boyfriend and snapped images of the two of them to entertain her friends. It didn't take long for her snaps to go viral, eliciting comments such as "Girl's Snapchat boyfriend is so perfect he can't be real" and "Loneliest girl in the world [she's not] creates the perfect boyfriend on Snaptchat." 

Check out Molly's hilarious montage of her and her "boifriend." For more snaps, follow @meandmyboifriend on Instagram.

[marketr]

No one ever stops to consider the consequences of running a successful brand Tumblr. Followers. Engagement. Riches. Anyway, here are a few simple tips from the experts at americanexpress.

[dredelmeier]

Just as it's important for brands to strategically create an image online, people, too, must be careful about how they are perceived. Here are a few tips for both individuals and brands to create, defend, and maintain their online image.

[dredelmeier]

"As PCs become an integral part of the lives of even more people, it is incumbent upon us as marketers to to bridge the gap between the technical details and the emotional experience of using cutting-edge technology. This is why it's important that we talk to consumers about what's meaningful to them. Even in the PC market, our brand has to be breakthrough, relevant, innovative."

The above quote from the "Inside Intel Inside" case was particularly relevant to me as a marketer in the high-tech industry. While reading it, I couldn't help but recall my introduction to a brand that has since become a hugely significant part of my life. When I was in sixth grade, my math teacher wrote the number "one" followed by 100 zeros on the board. He told us that the number he drew was a "googol" and that we would soon be hearing much more about the company that drew inspiration for its name from that number. That experience, I realized years later, was not only my introduction to the search engine, but also the beginning of my emotional connection with the company. It was the start of my Google "story" - an essential way that brands use their consumers to spread their messages.

Over a decade later, I began my first day as a Google employee. At orientation, we watched "Dear Sophie," a Google Chrome commercial that highlighted the bond between a father and his daughter. The commercial appealed to viewers' feelings, experiences, and emotions to show the power of the search engine. While it highlighted Chrome's features by showing how Daniel Lee uses it, it didn't flood the user with details about Chrome's capabilities. Just as Intel developed creative that represented the brand as innovative, creative, and "the center of your digital world," Google used warmth, love, and the importance of family to bridge the gap between the technical details and the emotional experience.

[glamour]

via New Blog *Dressed

[dredelmeier]

Elie Tahari: The Power of Strategic Licensing

Over the long weekend, I had the pleasure of visiting the offices of Elie Tahari in NYC with the MIT Sloan Retail Club. One of the leaders with whom we spoke was Krystle, the VP of Licensing (women, men, children, and home). Krystle spoke about tapping into the potential of Tahari by strategically licensing products in categories such as sunglasses, bedding, and dinnerware. Krystle hopes that licensing will help make Tahari more of a lifestyle brand by "dressing her [the customer] head to toe." 

At our visit, I asked Krystle how she plans to maintain Tahari's identity and consistency when brands such as Burberry and Tommy Hilfiger have nearly been destroyed by over-licensing. Her response, noted below, really resonated with me and gave me a new appreciation for a brand's growth strategy.

It is very easy for a brand with a famous logo (ex. Tommy Hilfiger) or print (ex. Burberry) to over-license by simply sticking the logo or print on an item. In this case, licensing is less about quality and more about the item as a recognizable status symbol. Brands with a logo or print can more easily fall into the trap of over-licensing. Tahari doesn't mark its items with logos; rather, Tahari items are marked by quality. Consequently, maintaining the highest quality on licensed items is key.

Be picky! Don't accept any item that Elie Tahari wouldn't approve of. If a sunglasses bridge is too narrow or a sheet set isn't the right shade of blue, send it back. The licensee can't distribute anything that isn't approved by Tahari.

Be strategic with your partners. Look for licensees with a large distribution network, but make sure you aren't their lowest priority. Sometimes, it's better to partner with a smaller company if it means that you will get personalized attention and support.

Manage the creative (to some extent) in-house. The advertising for licensed items should be consistent with the advertising for items designed and produced by the brand.

Choose your own prices. Look at your competitors' prices, and price accordingly. Don't let licensees under or overvalue your products, as you will either dampen the way your brand is perceived or isolate your customers.

Manage the expansion into new markets. Make sure that all licensed items are market appropriate before expanding just for the sake of increasing sales.

Krystle and her team have clearly developed a licensing strategy that will help the company grow and reach new markets while maintaining the Tahari essence. I am extremely impressed by Tahari's commitment to quality and have high hopes for the future of the brand!

[pewresearch]

[dredelmeier]

[dredelmeier]

Unilever is a quintessential “house of brands”. The company attaches its brand name to hundreds of others; in doing so, Unilever endorses its brands - and all that they stand for. With its “real beauty” campaign, Dove is one of Unilever’s most famous brands. Dove’s worldwide marketing campaign aims to empower real women and make them more confident, as seen in “Onslaught,” which tells parents to “talk to your daughter before the beauty industry does.”

In another office at Unilever, however, teams work hard to market Axe by objectifying women and making them appear powerless against men. Axe has been criticized for being a brand that ”epitomizes the sexist and degrading marketing that can undermine girls’ healthy development.”

As a marketing professional, where do you draw the line? Can a brand manager move from Dove to Axe and still feel confident about the message that he/she is promoting? Unilever’s position as a house of brands rather than a branded house offers the company the luxury of representing hundreds of brands that may have competing messages. Had the company developed as a branded house, it would now be making more strategic decisions about what messages to associate with its brands.

[dredelmeier]

Porter Airlines: Flying Refined

When airlines have a competitive advantage, it is usually because they are able to deliver more than their competitors on either price or quality. Singapore Airlines was clearly a leader in quality -- from personalized magazines and drink orders to flight attendants engaging their passengers for just the right amount of time, Singapore exceeded its passengers' expectations in every way. Over the last decade and a half, however, flying has become less of a luxury and more of a necessity. When we choose airlines today, many people feel that they are choosing the lesser of two evils. I felt that way until five years ago, when Porter Airlines first opened its doors.

Porter Airlines is a boutique  airline based at the Toronto City Airport that began as a competitor to both traditional airlines (Air Canada) and luxury trains (VIA Rail) for short-distance travel within Canada. The company has since expanded to include short-distance travel between Canada and the US, and it recently announced plans to enter the long-distance market in the coming years. Porter is amazing on two fronts: first, it delivers prices at or below those of its competitors; second, it offers the perks that used to make flying fun (drinks, airport lounges, sales without blackout dates, city guides, service with a smile) -- always for free. Porter has become a Canadian success story because of its ability to compete on both price and quality.

In my opinion, Porter has its catchy, innovative marketing strategies to thank for its success over the last five years. Take a look at the airline's mascot, "Orte" the racoon, as he celebrates Porter's achievements and unique offerings.

[fastcompany]

[dredelmeier]

Chelsea Clinton is the product of two of the most powerful brands in the world. Now she’s finally carving out her own identity—by joining the family business. Read more>

[dredelmeier]

In anticipation of Mad Men's last season finally beginning tonight, here are six marketing lessons to live by:

1. You're only as good as your last campaign.

2. Take the risk to reap the rewards.

3. The past can be your greatest asset.

4. The power of PR.

5. Constantly adapt and innovate.

6. Love what you do.

[dredelmeier]

Competitive Forces Impacting the Global Wine Industry

Reading the "Concha y Toro" wine case reminded me of a similar case that we read in Strategy, "Global Wine Wars." In Global Wine Wars, we studied the factors affecting the global wine market and the challenges that France faced as an old world producer in an industry trending towards new world products. While Concha y Toro is Chilean and Latin America's largest wine exporter, it still faces many of the same challenges that plagued France when trying to determine whether the country's wine producers should stay true to their roots or evolve to meet the growing needs of the market. This case made me realize how important it is for a company to study the competitive forces affecting the industry before trying to develop a marketing strategy - not only will this help a company find its own place in the competitive landscape, but it will also provide insight into how competitors view the market. In the case of wine, it is even more difficult for a company to differentiate itself, as it is clear that not much changes from South America to Europe in an increasingly global market.

[dredelmeier]

13 Of The Worst Product Flops Of All Time

Whenever I think of product failures, the first product that always comes to mind is Segway. While Segway (somehow) seemed like a brilliant idea worth almost $5000 a piece, the product failed to take off and became the laughing-stock of the transportation industry. While the Segway was cheaper than a car, faster than walking, and smaller and more agile than many forms of transportation, it was simple a product, not a solution. Where would you park it? Charge it? Should riders be on the sidewalk, or the road? Was the design cool - or dorky? While the Segway has since found its niche (and is often seen with security at malls and tourists on city tours), the Segway failed to find an opening in the market and reach its target consumer at its launch.

While browsing BuzzFeed the other day, I came across "13 of the worst product flops of all time." While the Segway is famous for its flop, other major brands have also launched products that have failed, many of which beg the question, "how could anyone ever think this was a good idea?". Many of these products were launched under a parent brand well known for much more successful products - while brand recognition is usually a good thing, in these cases, previous associations caused products in new industries to fail. With Colgate kitchen entrees, for example, Colgate tried to expand to frozen meals, but consumers preferred not to associate their food with peppermint paste. Similarly, Cosmopolitan magazine attempted to launch Cosmopolitan yogurt, but after only 18 months, the magazine pulled the product (I'm fine with my magazines sticking to paper products). My personal favorite product flop listed is "Thirsty Dog" bottled water, which marketed its product on the premise that dogs and cats deserve their own flavors of bottled water. I'm all for pampering your pets, but this attempt took niche markets a little too far.

[fastcompany]

You want your image to be consistent and thoughtful and what comes up at the top of a search to match that. So, go ahead and Google yourself.

Why You Should Google Yourself And Not Feel Guilty About It (via fastcompany)

[dredelmeier]

Our Global Branding Adventure: The Power of Personal Brands

When Devin and I studied Carolina Herrera for our final branding project, we really enjoyed learning about the power and influence of leadership in eponymous brands. While I expected to see Carolina's influence exhibited throughout our company visit (which I certainly did, and then some), I did not expect to be so impacted by the power of personal brands in all of our visits. 

Berlin

  Our trip kicked off with a visit to Nickelodeon, at which the Director of Marketing walked us through their "Heart, Fart, Smart" strategy, kid-centric core values, and detailed personas. Our host had been at Nickelodeon for years and clearly embodied the brand. She was confident, relatable, fun, and inspiring - all traits that Nickelodeon would be proud to call its brand (in any part of the world). We later visited Dan Pearlman Branding, and a member of the creative team walked us through an exercise in using paper to represent ourselves. While this was certainly an unconventional way of meeting a group, it nonetheless represented the brand's values and culture, and it was evident from the host's attitude how passionate he was about his work. Even our Berlin tour guide's personal brand was a representation of the city - her family had a rich and contentious history, much like the city, as was her serious but proud demeanor.  

  Stockholm

  For the  majority of our class, it was our first visit to Stockholm, and it didn't take long for us to fall in love with the city. Given that two of our three company hosts were Stockholm transplants from North America, we clearly aren't the only people who felt this way. At Spotify, we met the director of marketing, who had been at the company from its early stages. His laid back but ambitious attitude, humble and warm nature, and desire to welcome us and show us all that is special about Spotify was again in line with the culture of the company that began as a startup and evolved into an international phenomenon. At H&M, we learned from the Director of Environment Sustainability about the company's efforts to develop and maintain its role as a leader in sustainability. Our later visit to Acne was one of the highlights of the trip. Mattias, the CEO, welcomed us with open arms, and with his long hair, silver shoes and ripped white T, his coolness exuded Acne's brand image. Mattias shocked us all with the story of how he became CEO at such a young age, but his story is a testament to the brand's youthful, unconventional nature and proof that Acne is a brand marked with stories from its past. 

Madrid, La Coruna, Ourense 

Our trip culminated in Spain, which was the perfect country to wrap up our adventure. In La Coruna, we visited the headquarters of Inditex for a tour of Zara. Our host was beyond knowledgable about the design, production, and distribution processes, and it was evident through her interactions with other employees what a familial bond she has developed with many of her colleagues. At one point, a colleague gave her a hug and handed her a birthday present, making Zara feel more like a tight knit family than the huge corporation that it is. Throughout our tour, we watched as employees, fully clad in Zara (and other trendy brands), held meetings across multiple languages, ran prototypes from design to production, and styled the upcoming window designs to maintain a consistent store image worldwide. Finally, we traveled to Ourense and visited Carolina Herrera and Dominio do Bibei. The CEO and COO lived out Carolina Herrera's vision for having a luxury brand grounded in family roots, and the entire team graciously welcomed us as their own. The men, perfectly tailored in their double breasted suits, and the women, effortlessly styled in oversized sweaters and CH heels, proudly embodied the brand and inspired us to one day dress like them. By the end of the day, I not only aspired to purchase a Carolina Herrera handbag (and tell all my friends to do the same), but I also felt personally invested in the luxury brand - a rare feat when the luxury segment so often isolates its consumers. 

Overall, the trip gave me a new perspective on the power of personal branding and the impact that every employee has as the outside image of a brand. I am now acutely aware of the power that my attitude, ambitions, and actions have in representing me personally and professionally.