enFormation

[enformation-blog]

BWB should Focus on its PoDs to Achieve Success

Social ventures have popularized “causes as a business” with increasing celerity. As this phenomenon becomes more common place, traditional business models have adopted the craze as well. Most recently, Warby Parker popularized it with their “buy one, give one” model as an introduction to the marketplace. However, over time they dropped it because the cost of providing free eye ware became very expensive as the company scaled and grew in popularity.

Similarly, Better World Books (BWB) has found itself in a position by which it must now determine a way forward amidst increasing costs and competition. With major players like Amazon providing economies of scale and scope simultaneously, and the growing shift towards an e-book trend, BWB is facing a dilemma. Should they follow others or remain true to their core vision is the most pressing question facing the company. For instance, if BWB follows the ebook trend, it might cannibalize its core mission of recycling and thereby lowering the carbon footprint of old, unrecycled books.

Thus, BWB should remain true to its niche market that is largely untapped by the likes of Amazon. Its Points of Parity include the avenue by which it sells, which is online, as well as its social focus. However, its Points of Difference include its unique profit model, which drives higher donations for its social cause via gross revenue; its commitment to create jobs for the local community vs. moving elsewhere; and its deliberate use of carbon efficient carriers. Although BWB is experimenting with bin collection rental spaces, buybacks, and the salvation army, none of these options are working. By staying true to its Points of Difference, they will be the most successful.

[enformation-blog]

BWB should Focus on its PoDs to Achieve Success

Social ventures have popularized “causes as a business” with increasing celerity. As this phenomenon becomes more common place, traditional business models have adopted the craze as well. Most recently, Warby Parker popularized it with their "buy one, give one" model as an introduction to the marketplace. However, over time they dropped it because the cost of providing free eye ware became very expensive as the company scaled and grew in popularity.

Similarly, Better World Books (BWB) has found itself in a position by which it must now determine a way forward amidst increasing costs and competition. With major players like Amazon providing economies of scale and scope simultaneously, and the growing shift towards an e-book trend, BWB is facing a dilemma. Should they follow others or remain true to their core vision is the most pressing question facing the company. For instance, if BWB follows the ebook trend, it might cannibalize its core mission of recycling and thereby lowering the carbon footprint of old, unrecycled books.

Thus, BWB should remain true to its niche market that is largely untapped by the likes of Amazon. Its Points of Parity include the avenue by which it sells, which is online, as well as its social focus. However, its Points of Difference include its unique profit model, which drives higher donations for its social cause via gross revenue; its commitment to create jobs for the local community vs. moving elsewhere; and its deliberate use of carbon efficient carriers. Although BWB is experimenting with bin collection rental spaces, buybacks, and the salvation army, none of these options are working. By staying true to its Points of Difference, they will be the most successful.

[enformation-blog]

Eat Mor Chikin!

As I read the McDonald’s article, I tried not to gag at the thought of eating their food. I was unsuccessful. I then began searching my mind to identify at least one fast food chain that has gained the trust and loyalty of its customers with consistency over time. KFC? No. Taco Bell? Nope! Chipotle? Ehh..they were doing well up until that E. coli outbreak last year.

….and then it dawned on me…Chick-fil-A is the clear winner!

Chick-fil-A is viewed highly in the minds of its patrons because

1.) The company makes great food, and 2.) Great customer service is at the core of its user experience.

They do an amazing job at increasing brand awareness and retaining equity by going the extra mile for customers—whether it is their “my pleasure” response that follows a customer's pleasantries,  or their willingness to give you extra sauce without charging  a condiment fee, they consistently provide a quality experience. Quality is the norm, not the exception, at Chick-fil-A.

It sets itself  apart  by making the “fast” food experience more personable, enduring, and memorable than the rest. The company has humanized an experience that is largely designed to be robotic by  nature. Thus, Chick-fil-A provides a 1-2 punch that others can’t beat, which is also why the brand invests so little on marketing and advertising. The experience sells itself!

[enformation-blog]

Intel’s Response is More Important than the Issues they Face

Intel should remain as agile now as its ever been. The press is prematurely proclaiming that the fat lady is singing on Intel, but the microchip giant is not down and out just yet. Rather, Intel is in a transitory phase. As PC sales drop and remain stagnant worldwide, Intel is now forced to look elsewhere to counter decreasing revenue from PC sales by entering new markets. Most importantly, Intel is facing this challenge head on…just as it always has!

For instance, when IT heads and consumers failed to keep pace with Intel’s cyclical R&D schedule that produced annual microchip releases, it responded by introducing the groundbreaking Intel Inside campaign via a co-op advertising model. Similarly, when their pace accelerated even more quickly, PC producers failed to keep up due to their inability to integrate Intel’s advanced chips into older models. Intel responded and removed that barrier by developing its own chip sets and motherboards for easier integration.

Likewise, Intel now faces another monumental pivot. It is well known that the company has recently announced its intentions to layoff 12,000 people. However, that is not much cause for concern considering its global workforce totals over 107,000 employees. Actually, being more lean by trimming excess fat is positive because proactivity in this manner will decrease operating costs. Also, by focusing on quality over quantity, it should be better prepared to face the increasing competition within its biggest growth opportunity: the cloud! Although the press surrounding Intel is largely negative at the moment due to the layoffs, a closer look at its financials reveals that cloud computing and the Internet of Things (IoT) accounted for “40% of [its] revenue last year and 60% of its profits” (Fortune, 2016). That figure will continue to rise as Intel focuses more of its time and efforts on research in this area.

Additionally, Intel is doing a great job at becoming a company of the future by focusing heavily on its seminal diversity initiative. The company is leading the tech industry by being one of the first to openly disclose its diversity numbers and its plans to invest $300M to increase representation amongst a homogenous workforce. One must not also forget that Intel is still the leader in the microchip processing business, and that sector of its business will remain a sizable portion of total revenues into the foreseeable future—even if PC sales are stagnant. So, what is most important is not that Intel is facing trying times, but rather that it is responding to changing times by readily responding with action!

[enformation-blog]

To Expand or not to Expand?

That is the question of the day.

Most things in life come full circle, meaning there is a certain level of predictability affixed to most outcomes. In the case of Burberry, Bravo has done a great job at reviving the brand by improving its brand manifold. The Burberry name was once synonymous with history, culture, legacy, and durability. However, in  the time preceding Bravo’s arrival,  it became synonymous with negative connotations that made the brand seem “stodgy” and out of touch due to its  wide-scale distribution model and egregious licensing terms—both of which diluted the brand’s value (i.e. too many SKUs) and limited its ingenuity during the new fashion age of the 1990′s.

Bravo’s leadership, however, mitigated those risks by bridging the gap between the old (Burberry’s) and the new (Burberry) by embracing aristocracy as well as its youthful appeal. Her efforts included a new ad campaign and better positioning that filled vacant price points. The results for Bravo and the new Burberry were phenomenal; the brand enjoyed increased awareness and sales across international markets as well as various age groups. 

However, this expansion must be heralded with caution because Burberry’s new found level of pervasiveness may render it overly accessible and, therefore, undesirable again. 

After all, the point of high fashion is as much about quality as it is exclusivity. The benefits in Bravo’s new found control over the brand’s distribution channels may be cancelled out by her desire to expand into too many new product categories. While the Prorsum label elevates it, other expansions into non-specialty categories such as sunglasses, perfume, and shoes may give away too much access to the ever-elusive “dream.”

[enformation-blog]

To Expand or not to Expand?

That is the question of the day.

Most things in life come full circle, meaning there is a certain level of predictability affixed to most outcomes. In the case of Burberry, Bravo has done a great job at reviving the brand by improving its brand manifold. The Burberry name was once synonymous with history, culture, legacy, and durability. However, in  the time preceding Bravo’s arrival,  it became synonymous with negative connotations that made the brand seem “stodgy” and out of touch due to its  wide-scale distribution model and egregious licensing terms—both of which diluted the brand's value (i.e. too many SKUs) and limited its ingenuity during the new fashion age of the 1990′s.

Bravo’s leadership, however, mitigated those risks by bridging the gap between the old (Burberry’s) and the new (Burberry) by embracing aristocracy as well as its youthful appeal. Her efforts included a new ad campaign and better positioning that filled vacant price points. The results for Bravo and the new Burberry were phenomenal; the brand enjoyed increased awareness and sales across international markets as well as various age groups. 

However, this expansion must be heralded with caution because Burberry’s new found level of pervasiveness may render it overly accessible and, therefore, undesirable again. 

After all, the point of high fashion is as much about quality as it is exclusivity. The benefits in Bravo’s new found control over the brand’s distribution channels may be cancelled out by her desire to expand into too many new product categories. While the Prorsum label elevates it, other expansions into non-specialty categories such as sunglasses, perfume, and shoes may give away too much access to the ever-elusive “dream.”

[enformation-blog]

The Walt Disney Company: A Timeless Brand Manifold

By: Sandy Booker

The brand manifold represents a fluid perception of a brand over time, space (i.e. context), and with particular audiences. The manifold should always have an underpinning of consistency that relays its foundations, or the hallmarks of the brand, to make it easily recognizable as times change. However, that consistency does not mean that the brand is static or stale. Rather, it evolves by simultaneously integrating past, present, and future perceptions, which also builds trust over time.

Disney is the prime example of a global brand that spans time and constituencies with ever-increasing popularity (e.g., towering box office revenues to date). Walt Disney’s landmark characters, from Donald Duck to Goofy, Micky and Minnie Mouse, Winnie the Pooh, Tigger, and Cinderella to name a few, are timeless. Generations of Americans share an affinity for them because of the literal magic that they capture on screen.

Walt’s characters, which are the pillar of the Disney brand, transcend every age, race, religion, and cross-sectional group imaginable because at their core, they are highly relatable. Furthermore, this brand manifold is globally recognizable and thematically consistent. As a testament to Disney’s ability to integrate the classics of the past with its intended future, the company recently announced its schedule of upcoming releases, including The Jungle Book (2016), Finding Dori (2017), and Toy Story 4 (2017).

Thus, the legend of Disney’s famed brand manifold continues.

[enformation-blog]

#mitsloanbrandingsectionb

[enformation-blog]

The Walt Disney Company: A Timeless Brand Manifold

By: Sandy Booker

The brand manifold represents a fluid perception of a brand over time, space (i.e. context), and with particular audiences. The manifold should always have an underpinning of consistency that relays its foundations, or the hallmarks of the brand, to make it easily recognizable as times change. However, that consistency does not mean that the brand is static or stale. Rather, it evolves by simultaneously integrating past, present, and future perceptions, which also builds trust over time.

Disney is the prime example of a global brand that spans time and constituencies with ever-increasing popularity (e.g., towering box office revenues to date). Walt Disney’s landmark characters, from Donald Duck to Goofy, Micky and Minnie Mouse, Winnie the Pooh, Tigger, and Cinderella to name a few, are timeless. Generations of Americans share an affinity for them because of the literal magic that they capture on screen.

Walt's characters, which are the pillar of the Disney brand, transcend every age, race, religion, and cross-sectional group imaginable because at their core, they are highly relatable. Furthermore, this brand manifold is globally recognizable and thematically consistent. As a testament to Disney’s ability to integrate the classics of the past with its intended future, the company recently announced its schedule of upcoming releases, including The Jungle Book (2016), Finding Dori (2017), and Toy Story 4 (2017).

Thus, the legend of Disney’s famed brand manifold continues.

[enformation-blog]

Drawing Parallels between Coke vs. Pepsi and Perception vs. Quality with Concha y Toro

Reshaping human behavior is a particularly hard thing to do, especially when it comes to people’s perceptions. As humans, we innately build mental models that contextually shape most of our experiences and interactions. In the same way that we shortcut our interpretation of the world around us (a la heuristics), brands also have the ability to shape our perception of their products based on brand association. For this reason, wine has long been associated with three specific countries—Spain, Italy, and France. That association is further married to specific cultural connotations that arise when one considers drinking wine from such places, such as luxury, the countryside, and fine dining experiences. Price notwithstanding, that is why consumption is largely an exercise of perception versus actual quality.

Tests like the Judgement of Paris and Texas A&M’s experiment have proven this concept to be true time and again. Similarly, Coca-Cola and Pepsi have long waged a war over cola. According to Nasdaq.com, “Coke controls 42% of the total carbonated soft drink market, compared with Pepsi’s 30%.” Pepsi’s long running “taste test” campaign, however, seems to undermine Coke’s position as the market leader because Pepsi has long proven that when oblivious to branding signals, people prefer their cola.  The above ad from 1983 shows this principle at play. Yet, Coca-Cola remains the market leader decades later because of perception, thereby proving that great branding trumps taste every time.

[enformation-blog]

By Sandy Booker

[enformation-blog]

Drawing Parallels between Coke vs. Pepsi and Perception vs. Quality with Concha y Toro

Reshaping human behavior is a particularly hard thing to do, especially when it comes to people’s perceptions. As humans, we innately build mental models that contextually shape most of our experiences and interactions. In the same way that we shortcut our interpretation of the world around us (a la heuristics), brands also have the ability to shape our perception of their products based on brand association. For this reason, wine has long been associated with three specific countries—Spain, Italy, and France. That association is further married to specific cultural connotations that arise when one considers drinking wine from such places, such as luxury, the countryside, and fine dining experiences. Price notwithstanding, that is why consumption is largely an exercise of perception versus actual quality.

Tests like the Judgement of Paris and Texas A&M’s experiment have proven this concept to be true time and again. Similarly, Coca-Cola and Pepsi have long waged a war over cola. According to Nasdaq.com, “Coke controls 42% of the total carbonated soft drink market, compared with Pepsi's 30%.” Pepsi’s long running “taste test” campaign, however, seems to undermine Coke’s position as the market leader because Pepsi has long proven that when oblivious to branding signals, people prefer their cola.  The above ad from 1983 shows this principle at play. Yet, Coca-Cola remains the market leader decades later because of perception, thereby proving that great branding trumps taste every time.

[enformation-blog]

Predicting Diffusion via Practicality: Satellite Radio is the Clear Winner

1. Satellite Radio

Admittedly, my analysis and positioning for satellite radio is biased because it is retroactive. We now know that satellite radio is a runaway success. XM and Sirius have enjoyed widespread adoption by users. Simply put, consumers have enjoyed the freedom of choice and wide variety of options that Sirius and XM provide. Traditional radio forcers far too many commercials on listeners, and although growth may have been slow at first due to the high, initial costs to retrofit cars in 2003, that hurdle is no longer an issue. Cars roll off the assembly line with satellite programming built in now-a-days.

2. Westaim’s Silver Bandages

This product could quickly gain traction and grow in popularity due to a host of positive factors including FDA approval in an adjacent market for the treatment of burns and ulcers, the expedient healing properties of silver, the steady growth still experience by the very mature bandage industry, and customers’ high willingness to pay for bandages that are more “premium” and “cutting edge.” However, there are two major concerns that might prevent widespread adoption, which are FDA approval for the consumer bandage market and the potential price point of the product. FDA approval should not be extremely difficult considering the company has already won approval for sale in hospitals; however, if the price point is exceptionally high in comparison to current bandages, the team should not enter the over-the-counter bandage market. Thus, market diffusion will likely be a slow process for this product.

3. iSmell

While this sounds like a great idea in theory, I think the iSmell is ahead of its time. No doubt, adding the ability to smell scents as they are projected from one’s screen during a movie, video game, or viewing of the Food Network channel is sure to be a dynamic experience. However, the technology doesn’t seem to be quite right just yet, so the likelihood of success via widespread adoption is low at this time. The only consideration that will change this pitfall is time, unfortunately. In 10-15 years, consumers might be more receptive to such technology, at which time market potential will be huge because of the possible applications of iSmell’s technology.

4. Sliced peanut butter

This product seems dead in the water because it is too different from current peanut butter products-ones that consumers are comfortably familiar with (and have been for quite some time). The way this product is framed puts one in the mindset of purchasing cheese slices, and that mental imaging simply does not go over well when applied to the context of making a PB&J sandwich. It also makes one think of the highly processed nature of this food due to the difficutly involved with turning a very sticky substance into a sheet-like form, which is  most likely a turnoff because PB&J should always be simple by nature.

To increase its likelihood of success, this company could give away free samples and hold public tastings in small test markets throughout their home state. They could even sell it as a novelty item and admit to its quirkiness rather than shying away from the fact that it is a questionable product. Their target market should be kids, as adults will be more skeptical of it for the reasons listed above.

[enformation-blog]

By Sandy Booker

[enformation-blog]

Predicting Diffusion via Practicality: Satellite Radio is the Clear Winner

1. Satellite Radio

Admittedly, my analysis and positioning for satellite radio is biased because it is retroactive. We now know that satellite radio is a runaway success. XM and Sirius have enjoyed widespread adoption by users. Simply put, consumers have enjoyed the freedom of choice and wide variety of options that Sirius and XM provide. Traditional radio forcers far too many commercials on listeners, and although growth may have been slow at first due to the high, initial costs to retrofit cars in 2003, that hurdle is no longer an issue. Cars roll off the assembly line with satellite programming built in now-a-days.

2. Westaim’s Silver Bandages

This product could quickly gain traction and grow in popularity due to a host of positive factors including FDA approval in an adjacent market for the treatment of burns and ulcers, the expedient healing properties of silver, the steady growth still experience by the very mature bandage industry, and customers’ high willingness to pay for bandages that are more “premium” and “cutting edge.” However, there are two major concerns that might prevent widespread adoption, which are FDA approval for the consumer bandage market and the potential price point of the product. FDA approval should not be extremely difficult considering the company has already won approval for sale in hospitals; however, if the price point is exceptionally high in comparison to current bandages, the team should not enter the over-the-counter bandage market. Thus, market diffusion will likely be a slow process for this product.

3. iSmell

While this sounds like a great idea in theory, I think the iSmell is ahead of its time. No doubt, adding the ability to smell scents as they are projected from one’s screen during a movie, video game, or viewing of the Food Network channel is sure to be a dynamic experience. However, the technology doesn’t seem to be quite right just yet, so the likelihood of success via widespread adoption is low at this time. The only consideration that will change this pitfall is time, unfortunately. In 10-15 years, consumers might be more receptive to such technology, at which time market potential will be huge because of the possible applications of iSmell’s technology.

4. Sliced peanut butter

This product seems dead in the water because it is too different from current peanut butter products-ones that consumers are comfortably familiar with (and have been for quite some time). The way this product is framed puts one in the mindset of purchasing cheese slices, and that mental imaging simply does not go over well when applied to the context of making a PB&J sandwich. It also makes one think of the highly processed nature of this food due to the difficutly involved with turning a very sticky substance into a sheet-like form, which is  most likely a turnoff because PB&J should always be simple by nature.

To increase its likelihood of success, this company could give away free samples and hold public tastings in small test markets throughout their home state. They could even sell it as a novelty item and admit to its quirkiness rather than shying away from the fact that it is a questionable product. Their target market should be kids, as adults will be more skeptical of it for the reasons listed above.

[enformation-blog]

Black & Decker

By Sandy Booker

Perception is key! It is also the crux of Black and Decker’s (B&D) current issue regarding its fledgling market share of the Professional Tradesmen’s space for power tools. Even more startling is the juxtaposition of B&D’s belittled share of the Tradesmen’s space with its global dominance in the Industrial and Consumer Tool market segments.

I largely attribute the dissonance between B&D’s simultaneous dominance and lack there of in these segments to its large investments in the Consumer Tools space. To the detriment of the Tradesmen line, B&D rolled out 29 new household products and heavily invested in the marketing of said products. The company’s inability to differentiate their household line of items from its line of saws, drills, and other power tools unfavorably diluted the brand in the eyes of construction workers and their crafty counterparts.

These men and women began to associate the B&D brand with in-home, appurtenant items instead of the redoubtable vision that a power tool should inspire when one is considering the purchase of such an item. That misguided association is an unintentional consequence of B&D’s failure to invest the same focus in the Tradesmen line that it did in its line of Industrial and Consumer Tools. Their misstep then led to further confusion, as some customers purchased household tools, falsely believing they were intended for outdoor use.

The Tradesmen line also lacked a wide variety of choice; brands like Makita offered 175 SKUs, while B&D only offered a handful of options. In addition to paucity, B&D lacked a robust distribution channel. Makita maintained a large shelf presence in Two-Step and Home Centers while B&D’s share amounted to a paltry equivalent of less than 10% of their shared shelf space. Unfortunately, high COGs and operating expenses only added to B&D’s additional problems of non-appealing product colors and higher favorability towards competing brands by potential customers.

However, all is not lost for B&D. In recent times we have seen the resurgence of several brands from celebrities like Sylvester Stallone with his Oscar nominated role in Creed to Dominoes Pizza and even Twinkies. Currently, consumers have a 58% purchase interest in the “DeWalt—Serviced and Distributed by B&D” name. DeWalt is also seen as “One of the Best” by a margin of 19 percentage points over the B&D name. Thus, B&D can ensure the growth and development of its Tradesmen line by leverage its global notoriety to build out the DeWalt brand. B&D should not completely disassociate itself from DeWalt either; an underlying association between the two will increase the likelihood of the purchase of a DeWalt item because of B&D’s globally trusted quality level.

[enformation-blog]

DAVID vs. GOLIATH

A LOOK AT CORONA vs. HEINEKEN

By Sandy Booker

In regards to Heineken, one widely regarded platitude that holds true in this instance is that confidence breeds cockiness. In fact, their success outright bred arrogance, which, amongst other things, is a major vulnerability.

 The pretension that Heineken operates with is easily visible in its messaging, which boasts of quality. Even when the messaging doesn’t work, Heineken maintains its blinkered state by refusing to change—opting to switch ad agencies that could relay the same messaging instead.  In this instance, a famous TED Talk by Simon Sinek comes to mind, “Start with Why.”

Simon examines Apple and other major brands to bridge the audience’s understanding of what it is that makes Apple so great. Similarly, he discusses the greatness of Dr. Martin Luther King, Jr. by questioning what it is that made him so great as an orator. Certainly, there were other great speakers in this world who could communicate effectively; however, they are not remembered in time as Dr. King is now, and they don’t have their likeness cast in stone in our nation’s capital to be lauded by millions of tourists every year. In fact, the reasoning for the widespread success of these two phenomena has little to do with what they did in comparison to why they did it. They both tapped into the public’s belief system as they ascended to success, effectively emoting their beliefs and dreams to millions. Essentially, humans connected with their message.

Heineken, however, has not grasped this concept, but Corona has. By contrast, Corona sells a lithe experience of the beach, the sun, and total enjoyment. Consumers connect the brand with their inner desire to experience the vision that the brand sells, which is why it has been so successful in terms of growth and expansion. In tandem with their ability to connect to the “why,” Corona also represents consistency—in pricing, design, targeting strategy, distribution, and their original brewery location. Such signals solidify brand message. Heineken, on the other hand, is lacking the former, and that has allowed Corona to gain traction by now being the second highest importer of beer to the United States.

All is not lost for Heineken, however. Above all, the prescription to its messaging issue is to reject a continuous display of hubris by developing a campaign that actually resonates with its intended audience. Hordes of young people under the age of 45 are responsible for the largest segment of beer consumption in the United States; thus, the messaging must relay something that is more more tangible than a discussion of quality and superiority—Heineken’s beer must conjure the experience of having a great time.

Another vulnerability is Heineken’s pricing strategy. Although it is understood that the brand can demand a premium as an importer, one must acknowledge that continually passing on the cost of rising taxes to customers will result in a higher premium—one that might isolate parts of its consumer base. Said base might be tempted to try Heineken’s cheaply priced alternative, Corona. The prescription to this issue is a reallocation of budgeted expenses. Heineken’s expenditure on adverts placed it in the number one spot for monies spent on marketing by all imported beer brands. Reallocating even a meager 5% (or less) of this spend from advertisements to taxes would preempt customer pass through and steady viability as the more cheaply price alternative (Corona) gains traction.

[enformation-blog]

DAVID vs. GOLIATH

A LOOK AT CORONA vs. HEINEKEN

By Sandy Booker

In regards to Heineken, one widely regarded platitude that holds true in this instance is that confidence breeds cockiness. In fact, their success outright bred arrogance, which, amongst other things, is a major vulnerability.

 The pretension that Heineken operates with is easily visible in its messaging, which boasts of quality. Even when the messaging doesn’t work, Heineken maintains its blinkered state by refusing to change—opting to switch ad agencies that could relay the same messaging instead.  In this instance, a famous TED Talk by Simon Sinek comes to mind, “Start with Why.”

Simon examines Apple and other major brands to bridge the audience’s understanding of what it is that makes Apple so great. Similarly, he discusses the greatness of Dr. Martin Luther King, Jr. by questioning what it is that made him so great as an orator. Certainly, there were other great speakers in this world who could communicate effectively; however, they are not remembered in time as Dr. King is now, and they don’t have their likeness cast in stone in our nation’s capital to be lauded by millions of tourists every year. In fact, the reasoning for the widespread success of these two phenomena has little to do with what they did in comparison to why they did it. They both tapped into the public’s belief system as they ascended to success, effectively emoting their beliefs and dreams to millions. Essentially, humans connected with their message.

Heineken, however, has not grasped this concept, but Corona has. By contrast, Corona sells a lithe experience of the beach, the sun, and total enjoyment. Consumers connect the brand with their inner desire to experience the vision that the brand sells, which is why it has been so successful in terms of growth and expansion. In tandem with their ability to connect to the “why,” Corona also represents consistency—in pricing, design, targeting strategy, distribution, and their original brewery location. Such signals solidify brand message. Heineken, on the other hand, is lacking the former, and that has allowed Corona to gain traction by now being the second highest importer of beer to the United States.

All is not lost for Heineken, however. Above all, the prescription to its messaging issue is to reject a continuous display of hubris by developing a campaign that actually resonates with its intended audience. Hordes of young people under the age of 45 are responsible for the largest segment of beer consumption in the United States; thus, the messaging must relay something that is more more tangible than a discussion of quality and superiority—Heineken’s beer must conjure the experience of having a great time.

Another vulnerability is Heineken’s pricing strategy. Although it is understood that the brand can demand a premium as an importer, one must acknowledge that continually passing on the cost of rising taxes to customers will result in a higher premium—one that might isolate parts of its consumer base. Said base might be tempted to try Heineken’s cheaply priced alternative, Corona. The prescription to this issue is a reallocation of budgeted expenses. Heineken’s expenditure on adverts placed it in the number one spot for monies spent on marketing by all imported beer brands. Reallocating even a meager 5% (or less) of this spend from advertisements to taxes would preempt customer pass through and steady viability as the more cheaply price alternative (Corona) gains traction.

[enformation-blog]

Black & Decker

By Sandy Booker

Perception is key! It is also the crux of Black and Decker’s (B&D) current issue regarding its fledgling market share of the Professional Tradesmen’s space for power tools. Even more startling is the juxtaposition of B&D’s belittled share of the Tradesmen’s space with its global dominance in the Industrial and Consumer Tool market segments.

I largely attribute the dissonance between B&D’s simultaneous dominance and lack there of in these segments to its large investments in the Consumer Tools space. To the detriment of the Tradesmen line, B&D rolled out 29 new household products and heavily invested in the marketing of said products. The company’s inability to differentiate their household line of items from its line of saws, drills, and other power tools unfavorably diluted the brand in the eyes of construction workers and their crafty counterparts.

These men and women began to associate the B&D brand with in-home, appurtenant items instead of the redoubtable vision that a power tool should inspire when one is considering the purchase of such an item. That misguided association is an unintentional consequence of B&D’s failure to invest the same focus in the Tradesmen line that it did in its line of Industrial and Consumer Tools. Their misstep then led to further confusion, as some customers purchased household tools, falsely believing they were intended for outdoor use.

The Tradesmen line also lacked a wide variety of choice; brands like Makita offered 175 SKUs, while B&D only offered a handful of options. In addition to paucity, B&D lacked a robust distribution channel. Makita maintained a large shelf presence in Two-Step and Home Centers while B&D’s share amounted to a paltry equivalent of less than 10% of their shared shelf space. Unfortunately, high COGs and operating expenses only added to B&D’s additional problems of non-appealing product colors and higher favorability towards competing brands by potential customers.

However, all is not lost for B&D. In recent times we have seen the resurgence of several brands from celebrities like Sylvester Stallone with his Oscar nominated role in Creed to Dominoes Pizza and even Twinkies. Currently, consumers have a 58% purchase interest in the “DeWalt—Serviced and Distributed by B&D” name. DeWalt is also seen as “One of the Best” by a margin of 19 percentage points over the B&D name. Thus, B&D can ensure the growth and development of its Tradesmen line by leverage its global notoriety to build out the DeWalt brand. B&D should not completely disassociate itself from DeWalt either; an underlying association between the two will increase the likelihood of the purchase of a DeWalt item because of B&D’s globally trusted quality level.