Wednesday, October 27, 2010

Lifestyle: The Third Level of Brand Development

Few young business leaders appreciate the value of their brand. That's because the meaning and importance of a brand grows with time and experience.

I acknowledge that in a few brief blog entries I cannot hope to cover all the complex issues of how a brand develops significant competitive value the longer it is used and the more completely it is integrated into a company's communications in all forms. 

So for the sake of simplicity, we're just going to break this very broad topic down into three distinct levels of brand development. In our previous two posts I identified level one as applying a brand as identification and level two as promoting a brand as benefit. Now we will consider Level 3: Brand as Lifestyle.

The highest level of brand development is realized when the unique brand promise synthesized from a company's whole package of strengths and capabilities becomes fully embraced and championed by the entire organization.

Everyone from the top of the company to the bottom sees themselves as performing their role in support of the brand. Leadership purposefully makes strategic decisions that build the value and influence of the brand. Departments and managers are encouraged and empowered to create powerful brand synergy within the organization and its processes. Passionate brand performance is brought to life within company personnel. And brand communications capture the heart and mind of both internal and external audiences.

At this level the brand is far more than mere visual identification or even a uniquely deliverable benefit. It is a lifestyle. A culture. An internally and externally recognizable and sustainable personality. It is the company.

A classic example of this level of brand development is Harley-Davidson, whose "pursuit of freedom" brand character has developed a deep personal and emotional appeal with a broad audience, from the renegade gang member on one extreme to the elite doctor or lawyer at the other.

Their unique brand promise has helped the company maintain a substantial price premium. A long backlog of orders. Healthy additional sales from accessories, clothing and events. And perhaps best of all, a low cost of sales because of an ever-growing population of lifelong repeat customers.

But whether or not your product or service has the glitz of broad consumer appeal, it can be much more than symbolic visual identification. Used effectively it can provide a unifying focus that represents a significant competitive advantage. Fully adopted and developed, it can be a driving force that guides your organization's growth and solidifies lasting relationships with customers.

Read about the other two levels of brand development now.

To talk to someone about taking your brand to the next level, contact us today by e-mail or phone 903-534-5220.

How Consumers View Sustainability

"Sustainability is good as long as it doesn't cost too much" is the bottomline purchasing behavior of most American consumers. But that doesn't mean sustainability as a brand platform is useless.

According to highlights from the second annual Brand Sustainable Futures report, published by Havas Media and MPG and featured on brandchannel.com, sustainability isn't a big factor in why consumers purchase a particular brand, but it does influence a customer's perception of a brand's meaningfulness.

The survey was based on an online survey of 30,000 individuals in 9 countries. And not surprisingly. U.S. consumers rank behind many other countries with only 5% of Americans claiming to always consider environmental/social aspects in their purchase decisions.

Globally, the survey suggests that 80% of respondents think "companies must act responsibly" and 76% say that businesses rather than governments "should deal with environmental and social issues." Unfortunately, only about a third of brands were considered "meaningful."

Of the companies that scored well, IKEA had the highest Brand Sustainability Futures Quotient of all. L'Oreal showed the largest improvement from last year. And Home Depot had the highest value for a U.S. company in the data from American consumers. Kraft and Google followed Home Depot based on answers by U.S. consumers.

So while America has a ways to go before positive environmental and social behaviors have a difference-making value for most brands, it is perhaps most developed in the design and construction industries where LEED credits and other green building contributions are of ever-growing importance.

And one thing you can know for certain – brands that have a poor record related to the environment will have a very hard time building business even in the U.S. Take BP for example. They're not likely to recover their lost consumer trust for many years to come.

Read the entire brandchannel story.

To talk to someone about helping you improve the meaningfulness of your brand, contact us today by e-mail or phone 903-534-5220.

Monday, October 25, 2010

Online Ads That Click

In many traditional forms of advertising, the time span between audience interest and access to additional information is often hours or days apart. Not with online ads.

Delivered within electronic newsletters, while browsing on various websites or viewed when on popular blogs and social media sites, online animated banners and static ads provide an immediate link between you and interested prospects.

Cornerstone has developed a number of these types of ads for our clients. Written and designed to draw attention effectively, communicate clearly and promote an immediate response, these tools are a vital extension of each client's existing brand messaging.

Online communications for GreenGlass gypsum board products feature the same strong environmental emphasis as print advertising and sales literature, while ads created for Vale Training Solutions all share a focus on the value of the skill improvements Vale courses provide.

Finally, like all forms of good communication, the secret is knowing how to make your point well without trying to say too much or not enough.

Review several examples of GreenGlass online advertising.

Review several examples of Vale Training Solutions online advertising.

Then when you're ready to talk to someone about improving your brand's online communications, contact us today by e-mail or phone 903-534-5220.

Thursday, October 21, 2010

In Downturn Some Spruce Up

The hotel industry in the U.S. has had to deal with the challenges of the economic downturn just like everyone else, but some have used it as a time to advance rather than retreat.

A recent story in the New York Times quotes Bjorn Hanson of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University who estimates that the capital investment in existing hotel facilities peaked at $5.5 billion in 2008. He further stated that expenditures fell to $3.3 billion in 2009 and were expected to drop to approximately $2.7 billion in 2010.

He also made the point that the lack of maintenance was beginning to be noticed by guests.

But there are exceptions. Starwood Hotels and Resorts, whose brands include Sheraton and Westin, are planning guest room redesigns in 41 key properties. In addition, Holiday Inn will complete its system-wide, top-to-bottom upgrade started in 2007 by the end of this year. Other top travel hotels are undergoing refurbishments in high-visibility markets.

The article also quotes Kevin Kowalski, senior vice president for global brand management at IHG, owners of the Holiday Inn brand, who states “Research from every recession since the Great Depression demonstrates brands that increased investment on their customer experience and marketing activity during the recession gained market share both during the downturn and during the recovery.”

Kowalski went on to say that the improvements included upgrades to lobbies, guest rooms and bathrooms, as well as new employee training programs, and had already resulted in increased revenue per room of 3-7 percent compared to unimproved rooms.

Finally, the article goes on to say that the challenges in the hotel industry are not over yet and a number of hotels are using these upgrades to help combat rate erosion in an increasingly price sensitive business climate.

The bottom line on all this proves again that there is financial value in maintaining a strong brand. Whether in supporting higher prices, increased market share or protecting existing prices from devaluation. It also reinforces another important point that a brand is much more than a logo, an ad slogan, or even a specific product – it’s the entire customer experience.

Read the entire New York Times article.

And if you want to talk to someone about sprucing up your brand, contact us today by e-mail or phone 903-534-5220.

Wednesday, October 6, 2010

Brand Benefit #5: It Lowers The Cost Of Sales

There are many good reasons why brand development can be a difference maker for your business. This is the fifth of ten posts highlighting those reasons for your consideration. Read the previous post.

Another way to measure the financial value of a brand is cost savings. Lowering your cost of sales to be more specific.

That's because a strong brand has already attained a certain level of awareness and positive equity in the mind of your audience. And because it requires a greater investment to launch a brand than to maintain one, your strong brand can reduce your promotional expenditure, giving you more money to invest in other priorities.

It's not uncommon for aggressive development efforts to require two to four times the investment of brand maintenance.

In a similar way, a strong brand reduces the amount of presales work required to prompt a prospect to consider a purchase.

It decreases the time and effort needed to build comparative credibility. And it eases the anxiety of purchase regret so your entire sales process can progress faster and more confidently, saving time, work and money for your sales force and your bottom line.

Read about the other 9 brand development benefits now.

To talk to someone about the difference-making value of a brand for your business, contact us today by e-mail or phone 903-534-5220.

Tuesday, October 5, 2010

Sweeeeeet Success

Whether you know it or not, cupcake bakeries are popping up all over the place. One company, Crumbs, racked up $23.5 million in revenue in 2009. What’s their recipe?


In an interview published on BNET.com, Jason Bauer, Crumbs co-founder, attributed the firm's extraordinary performance to three key principles.

Listen to the customer.
When the Bauers began Crumbs in 2003, it was a traditional bakery which happened to sell cupcakes. The cupcakes became so popular that a decision was made to focus the business on what their customers were buying them out of every day – cupcakes. Then, once that decision was made, they expanded the selection to take advantage of the demand. Crumbs quickly became known as “the cupcake place.”

Take calculated risks.
After growth in areas with similar demographics to their first store, they carefully opened a store that served a different clientele altogether and discovered the appeal of cupcakes was broader than they originally thought. Even with the financial concerns of the last year or so, they have discovered everyone loves to give themselves a sweet treat that only cost $3-$4.

Pick your people carefully.
Many of the people who are now part of the corporate staff were once counter help. As are many store managers. This has created a culture that understands the way customers think and how to deliver what they want.

In conclusion, Bauer emphatically states that the secret is simple, “It’s all about the cupcakes. They are the stars.”

There you have it – a business owner with a very clear understanding of what his brand delivers, how it appeals to customers and how vital the culture and buying experience created by employees can be. It’s just another example of how a strong brand can make a big difference.

Read the full article.

If you want to talk to someone about helping you make a bigger difference with your brand, contact us today by email or phone 903-534-5220.

Monday, October 4, 2010

E-mail In The Right Inbox

Getting the right amount of information in the right person's hands at the right time is the objective of traditional marketing communications. Putting the right e-mail in the right inbox is a digital extension of that idea.

Why? It's fast for one thing. Not just in the development and distribution of the communication itself. But, more importantly, in the response. In a previous post I mentioned some research suggesting that 75% of all opens and clicks and 47% of all response transactions happen in the first 24 hours.

It's also direct. All a reader has to do is click on a link in the e-mail and they are instantly connected to additional content, contact information for a customer service person or a way to actually buy the product or service they were just reading about. And that information can be text, video, audio, animations or whatever presentation format makes the point most clearly.

E-mail is cost-efficient too. There's no printing expense and the imagery resolution requirements allow for the use of less costly photographic resources. In many cases, distribution is less expensive than direct mail as well.

Best of all, for someone trying to justify the marketing money they spend, it's measurable. Reputable e-mail distributors can tell you how many messages were delivered, the percentage that were opened and what links were clicked once the e-mail was read. In some cases they will even provide contact information for those who responded.

The content of your e-mail can vary dramatically depending on your audience. Shorter messages work best with readers who don't know you well. Longer, multi-subject updates can have real value for information-hungry audiences.

Review several good examples of e-mail communications Cornerstone developed for the brand GreenGlass this past year. Visit the Project Profile on our website or download a pdf file that includes four different e-blasts.

To talk to someone about helping you put the right brand information in the right inbox, contact us today by email or phone 903-534-5220.