Marketing Segmentation

Rebranding Is Still Branding

There are lots of good reasons to rebrand, but throwing away your brand history isn’t one of them. Mr. Clean and its familiar jingle have been around since 1958 and have grown and evolved with the brand in step with the needs of their customers.

There are lots of good reasons to rebrand, but throwing away your brand history isn’t one of them. Mr. Clean and its familiar jingle have been around since 1958 and have grown and evolved with the brand in step with the needs of their customers.

There are many good reasons to launch a rebranding campaign – a new name, direction or product line. That said, though, rebranding shouldn’t abandon the original brand but instead move it to new ground with fresh expectations.

One of the worst outcomes of a rebranding campaign is to sacrifice the hard-earned capital of previous branding efforts. Even if a brand has some rust to shake off or a incurred a dent to smooth out, it still has residual value. Rebranding isn’t about starting over; it’s about refreshing (and fixing) what has been.

After a string of food safety issues, Chipotle received lots of advice about its brand. Some argued the company should scrap the name and start over. Others said the Mexican fast casual chain should retain its name and undertake a rebranding campaign that underlined why people like Chipotle's food and how the company has responded to its food safety crisis.

Like branding, rebranding is all about positioning. What makes your product or service distinct? What is your value proposition? Why should anybody care about what you offer?

Rebranding affords a chance to tell the world who you are in a fresh way, whether it’s updating your product or service line, using new tools such as video to tell your story or placing your story in new channels where customers hang out and pay attention.

Rebranding allows companies to respond to their customers' changes in taste. Think of all the food ads you now see that talk about being gluten free or produced without growth hormones.

Stodgy brands turn to rebranding to inject a youthful step into their offerings. You can still enjoy venerable Campbell’s chicken noodle soup, and now you can take it to work in a handy cup that heats up in a microwave.

One off the best uses of rebranding is to move from pushing a message to attracting viewers through informative, relevant and useful content. This can mean rethinking a website to relying on digital media promotion. A website makeover can evolve from what is essentially and electronic brochure to an information hub designed around how existing and potential customers or clients interact with a product or service. Moving to digital media could be as basic as relying less on the phone book and more on self-publishing content of value to customers or clients.

If, like Chipotle, a company is rebranding to move on from the past, then rebranding has to deal openly and honestly with the past. That honesty conveys its own freshness that customers often will reward. This requires more than lip service to change. Show the change with video and validate its value with credible third parties.

Rebranding is not a brand divorce. It is more like a brand family extension. The all-purpose Mr. Clean was introduced in 1958 with its own character and jingle that helped propel the product, originally developed to swab out ocean-going ships, into a best-selling customer favorite.

In 2016, after the Mr. Clean product line had expanded into a full line of cleaning products, including the Magic Eraser, the character and jingle were modernized. You could still recognize the spiffed-up Mr. Clean and the jingle struck a familiar chord. Instead of mentioning white sidewall tires and old golf balls, the jingle talked about using Mr. Clean to “clean your whole house and everything that’s in it.”

The rebranding has been an unquestionable success. And the jingle is the longest running advertising tune in television history.

Surprising Impact of Surprise and Delight Marketing

Apple’s use of Maya Angelou’s “Human Family” poem in a TV ad to mark the opening of the 2016 Rio Olympics is an example of how to capture attention through the use of surprise and delight in marketing.

Apple’s use of Maya Angelou’s “Human Family” poem in a TV ad to mark the opening of the 2016 Rio Olympics is an example of how to capture attention through the use of surprise and delight in marketing.

Poetry plays a paltry role in advertising. So when a great poem features in an ad, it has a huge impact.

Apple is airing a 60-second TV spot with the late Maya Angelou reading her Human Family over a series of engrossing photos of people from around the world shot on iPhones. The ad debuted during the opening ceremony of the 2016 Rio Olympics, positioning Apple as an essential part of the human family.

Poems don’t work because of rhymes or clever cadence. They work because they are surprise content. They are so different than the norm, they captivate attention. If the poem or surprise content is good, the listeners keep listening and watching.

People like surprises. Studies prove it. And as much as advertisers obsess over the numbers of impressions an ad gets, a well-timed surprise can have as much or more impact.

The element of surprise doesn’t have to be of the jumping-out-of-the-cake variety. It can just be different or out of ordinary, like a poem.

Often, visual effects can surprise and delight an audience. Wieden + Kennedy’s ongoing series of ads for Old Spice relied on surprise elements from Terry Crews impersonating beard stubble to Mr. Wolfdog as director of marketing to Isaiah Mustafa on the beach showing how to smell like a man. The ads mostly appeared on Old Spice’s YouTube Channel, racking up nearly 100 million views. Instead of young adults bypassing commercials, they couldn’t wait to see and share these ads.

Surprise announcements can have an impact. MasterCard has a “Priceless Surprises” campaign that involves giving its  followers on social media gifts and prizes, such as a meet-up with Justin Timberlake or VIP tickets to the Grammy Awards. The campaign turned into an app that brings the credit card company even closer to its users through the use of surprise. The campaign and the app have resulted in greater brand loyalty and a barrage of positive online comments.

Apple, Old Spice and MasterCard can afford top-flight creative talent to produce surprising content and campaigns. So it’s important to note that surprise and delight doesn’t have to be a high-priced option. The auto mechanic who sends a thank you note, the vendor who unquestionably replaces a product and the sales rep who places a follow-up call to make you you successfully assembled a piece of furniture are examples of surprise and delight marketing.

The heart of surprise and delight marketing is making an emotional connection that instills loyalty. Kleenex took note that many of the status updates by its Facebook followers said they were sick. The company tracked down the actual addresses of 50 customers with colds and sent them a get-well basket of Kleenex products. Most of the surprised recipients took selfies with their surprise gifts and posted them on Facebook, attracting thousands of views.

The Apple commercial featuring an excerpt from Angelou’s well known poem was beautifully produced and deeply affecting. But in the end the ad was just a poem and photos taken on iPhones. Surprising people is less about money than imagination.

Human Family
I note the obvious differences
in the human family.
Some of us are serious,
some thrive on comedy.
Some declare their lives are lived
as true profundity,
and others claim they really live
the real reality.
The variety of our skin tones
can confuse, bemuse, delight,
brown and pink and beige and purple,
tan and blue and white.
I've sailed upon the seven seas
and stopped in every land,
I've seen the wonders of the world
not yet one common man.
I know ten thousand women
called Jane and Mary Jane,
but I've not seen any two
who really were the same.
Mirror twins are different
although their features jibe,
and lovers think quite different thoughts
while lying side by side.
We love and lose in China,
we weep on England's moors,
and laugh and moan in Guinea,
and thrive on Spanish shores.
We seek success in Finland,
are born and die in Maine.
In minor ways we differ,
in major we're the same.
I note the obvious differences
between each sort and type,
but we are more alike, my friends,
than we are unalike.
We are more alike, my friends,
than we are unalike.
We are more alike, my friends,
than we are unalike.

Rick Steves as a Guide to Value Propositions and Branding

Travel guide Rick Steves provides excellent direction on how to express a value proposition and back it up with authentic personal branding.

Travel guide Rick Steves provides excellent direction on how to express a value proposition and back it up with authentic personal branding.

Rick Steves says a good guide book is a $20 investment to ensure a great $3,000 vacation. His comment is the kind of crisp value proposition companies should emulate.

Many companies settle for value propositions that are inward looking and self-serving. A value proposition should say how your product or service will solve problems for or deliver benefits to your customers.

Junk the jargon and put aside the taglines. Use plain language to convey your value to customers in less than five seconds. Make your brand a living, breathing example of your value proposition. 

Steves has earned a reputation as a well-informed and informative travel guide. His guide books are chock-full of helpful tips from how to pack to where to go.

Steves hosts a travel show on PBS that reinforces the tips found in his guide books. He just aired a three-part series consisting of practical advice for European travelers that included smart ways to travel, how to protect your valuables from pickpockets and savvy moves to avoid long lines at major venues.

Steves doesn’t brag about his own guide books. He doesn’t have to. Users tell fellow travelers about them, including Steves’ advice to rip up his books so you carry only what you need during day trips. Those word-of-mouth recommendations are worth a lot more than advertising or self-promotion.

Implicit in Steves’ simply rendered value proposition is that the $20 you spend for his guide book will save you a lot more when on the road. Sometimes he recommends spending money – for an upgraded train ticket or an all-city venue pass – that enhances a trip and saves valuable time. Grabbing some shuteye on a train ride or bypassing a ridiculously long line can mean seeing another sight or spending more time in the place you’ve always dreamed of seeing. 

The Rick Steves brand is all about useful information that he has personally vetted. When you buy his guide book, you know the advice he dispenses is based on his own experiences. The combination of his TV show, guide books, guest appearances and audio tapes makes Steves your trusted travel companion. His advice is golden, whether it’s what shoes to pack, how much underwear to bring or where to store your suitcase on daytrips. You might even be inclined to buy the suitcase he designed for ease of travel.

A solid value proposition, as Steves illustrates, should provide a concrete result for a customer expressed in a short statement. Branding, which features your differentiation from competitors, is separate from the value proposition. If you try to conflate the two, chances are you will inject hype and undercut the authenticity of the value proposition.

Follow Steves’ lead in describing the value of his guide book to customers and living your brand so customers choose your book instead of a competitor’s. 

The Seven Big Problems of Marketing

Marketing has some big problems in today’s economy, ranging from how marketing works in the digital world and global marketplace to coping with exploding numbers of communications channels and disruptive technological change.

The American Marketing Association unveiled what it calls an “intellectual agenda” that identifies seven big marketing problems in the face of ever more fragmented and distracted groups of would-be customers.

AMA CEO Russ Klein says the seven big problems are intended as “above-the-din context” for addressing an increasingly challenging marketplace while maintaining objectivity and an action orientation.

Here are the seven big problems as described for AMA by Bernie Jaworski, Rob Malcolm and Neil Morgan:

1. Effectively targeting high-value sources of growth

Long gone are the days when brands could be one-trick products. Market segmentation is a bigger factor now than ever, which forces more critical choices about what segment to target that offers the best opportunity for a positive return.

After locating the ripest opportunity, brands need to decide how to position products and influence consumer decision-making. That can involve bumper-car competition with other brands that are trying to win in the same segment. Effective marketers call this “demand landscape mapping,” which still is more like the Lewis and Clark expedition than precise digital cartography.

2. The role of marketing in the firm and C-suite

Historically companies have focused on making and distributing products efficiently – the supply side of the equation. In today’s marketplace, consumer demand has become a more dominant driver, which means the marketing department that had been assigned a room down the hall has been summoned to the C-suite.

Company executives must decide how to integrate marketing into organizations weighted toward production. They also need to figure out whether marketing should be centralized or farmed out to individual product groups. There are company culture aspects to consider by switching to products consumers want from products you want to make.

3. The digital transformation of the modern corporation

The Internet of Things is forcing all kinds of companies to go from “dumb” to “smart.” This transition transcends Big Data and social media and goes to the heart of business models, company hierarchies and the consumer interface.

One way to think of this evolution is to imagine brands are going from a world of two-dimensional videos to three-dimensional video games. There is constant, often real-time interaction with consumers and competitors. There is less time to react and a higher premium on being nimble. The marketing department is arguably best suited to be the front line soldiers in this advancing battle.

4. Generating and using insight to share marketing practice

Research has always been a fundamental building block for disciplined marketers, but today’s challenge is a mound of information. There is a lot of data and plenty of analytics, and there also is the potential for overlooking insights gained by direct consumer contact.

The heart of this problem is whether it is better to analyze consumer behavior or actually observe it. Traditional research methods can reveal why a consumer chooses one brand over another and why. It may not reveal daily experience that could suggest an openness – or even eagerness – for a different alternative, a breakthrough product. A key question is to decipher what tools and techniques are more effective at breaking the “insights code.”

5. Dealing with an omni-channel world 

Even the most efficiently run companies have to face a world of chaotic communications and channels. Nothing illustrates this point better than the surging rise in online sales. A brand not only has to worry about shelf space and in-store promotions; it also has to contend with how to sell on Amazon. Bigger brands need to sort out the brick-and-click interplay. 

Brand marketers must engage consumers on what to buy as well as where to buy it. Many brands already have parallel marketing universes online and in-store, which often includes the option of buying online in a store for merchandise not in local inventory. However, this seems like just the beginning, not the end scene of effective omni-channel marketing.

6. Competing in dynamic, global markets

Globalization is usually described as manufacturing products offshore in low-wage countries to cut production costs. The recent release of the so-called Panama Papers reminds us that capital flows across international borders are a very big deal. But we may just be witnessing a burst of a different kind of international competition with the seemingly sudden introduction of brands we’ve never heard of before.

It wasn’t that long ago when Samsung and Kia became recognizable brands in our marketplace. Expect more. At the same time, wider arrays of U.S. brands have spread their wings and flown on to foreign markets, raising questions about supply chains, unfamiliar regulation and the cultural competency of marketing. The marketing role must take on a deeper role to perceive how a brand can withstand foreign competitors at home and abroad, to take advantage of global opportunities and to see trends as they emerge, not after they turn into tsunamis.

7. Balancing incremental and radical innovation

“Firms need to compete in two time periods: the present and the future.” How can companies achieve the ambidextrous skill to manage in dual universes that may be hugely different? More important, how will the customer experience evolve, especially given the growth of mobile devices that can be used to compare prices, search other distribution channels and pay for goods?

AMA suggests this balancing act will require thinking more about platform products, franchises and product ecosystems. Concepts like “fail fast” may become standard operating procedure. Are there models to emulate successful reinvention and what metrics matter for innovation? How do you go beyond product innovation to organizational, financial and marketing innovation?

Avoid Snap Judgments about Snapchat

Snapchat is no joke with more than 100 million user visits and 7 billion video views per day and a user base heavily weighted with Millennials.

Snapchat is no joke with more than 100 million user visits and 7 billion video views per day and a user base heavily weighted with Millennials.

If you want to direct a message to young adults, consider delivering it on either Instagram or Snapchat. Yes, that Snapchat. 

For many people, Snapchat, which launched in 2011 and was originally called Picaboo, is a quirky social media platform where you post something, then it goes poof. Well, that impression is so yesterday. Almost literally.

In the last two years, Snapchat has added new functionality that allows users to tell more complex stories that hang around longer, send direct messages and conduct video chats. Snapchat’s popularity has exploded, with 100 million user visits per day, a user base nearly the size of Twitter’s and 7 billion daily video views. That is close to Facebook’s 8 billion daily video views, but Facebook has an audience 15 times larger than Snapchat.

If you want to reach young people in the 18-24 age group, Snapchat is a good choice. It has more than three times the following in that cohort than Facebook or Twitter and more than twice Instagram.

If you want to reach young people in the 18-24 age group, Snapchat is a good choice. It has more than three times the following in that cohort than Facebook or Twitter and more than twice Instagram.

Snapchat appeals to young adults because it is relatively frictionless. Tap and shoot. Hold the button down for video. Snapchat is more personal than Instagram. You can share with a chosen group, not broadcast to the world. For the impulsive, Snapchat offers nearly guilt-free, real-time sharing, with the knowledge that the post will soon disappear. (After a run-in with the Federal Trade Commission, Snapchat settled and admitted that posts aren’t absolutely deleted and in some cases can be retrieved with the right forensic tools. For intentional users, this is a meh moment.)

Writing for socialmediaexaminer.com, Suzanne Delzio says Snapchat’s audience is growing and highly engaged – appetizing metrics for advertisers and anyone who needs to reach a young adult audience. For example, Snapchat could be a perfect crisis response vehicle to tell college students about an infectious disease outbreak and the steps to combat it. Snapchat might be the right vehicle for a continuing campaign to reduce the incidence of sexual abuse on dates.

Delzio says Snapchat endured early criticism for its vertical-only video format. However, data indicates mobile device users strongly prefer vertical versus horizontal video formats. Score this as a built-in advantage for Snapchat. The video completion rate, Delzio adds, on vertical formats is nine times higher, which is good news for marketers who often place their calls to action near the end of a video. Think of how this might work with a video about a car or car insurance aimed squarely at young adult consumers.

Instagram has staked out a strong position with Millennials, but Snapchat is catching up. Delzio reports that a study of Millennial smartphone users shows they spend 5.9 hours per month on Snapchat versus 7 hours on Instagram. Millennials spend almost 26 hours per month in Facebook, but it is a different experience. The key takeaway, Delzio writes, is that 76 percent of Millennials are already plugged into Snapchat.

The network that started in a Stanford classroom may be ready to dress up and go out on the town. Delzio says advertising rates have been lowered on Snapchat to sweeten its appeal for a broader group of advertisers.

In the world of social media, yesterday’s news is ancient history. Snapchat may have been a punch line, but it has quickly grown into a significant network for a key demographic group. Reconsider any snap judgments you may have made about Snapchat and consider how you can put it to work. 

More to Segmentation than Age

Whole Foods Market announced a new chain of grocery stores aimed at younger, more price-conscious Millennials, but may have oversimplified its segmentation by overlooking the ageless ways it attracts food buyers.

Whole Foods Market announced a new chain of grocery stores aimed at younger, more price-conscious Millennials, but may have oversimplified its segmentation by overlooking the ageless ways it attracts food buyers.

No one denies we live in a segmented marketplace. But the segmentation may be a lot more complex than merely dividing us up by age, gender or geography.

As Katie Martell, writing for ragan.com, pointed out in a blog, Whole Foods Market managed to miss the demographic mark and diss other age cohorts with its announcement of a new chain of food stores designed especially for Millennials.

It is an example of oversimplifying segmentation.

Millennials are about to overtake Baby Boomers as the largest population segment, but they are hardly a monolithic group. To design a grocery store just for them may prove a tricky task.

What's interesting about Whole Foods Market is its broad appeal across demographic, geographic and even income groups. A CFM team spent an entire day at the Whole Foods Market in Seattle's University District. The diversity of customers, especially considering the relative prices for food, was astonishing. What drew people to the store – in some cases from miles away – was Whole Foods Market's  commitment to quality organic fruits, vegetables, meat and seafood.

We interviewed housewives, professionals on their lunch break, a mailman and college students. What they bought and how much they spent varied, but their reasons for coming were pretty much the same. The mailman, who drove to the store from many miles away, called it "inconvenient quality."

Several of those we interviewed joked about the chain's unofficial nickname of "Whole Paycheck." But that didn't deter them from shopping at the store.

The winning pitch our team made to provide PR for the first Whole Foods Market store in Portland was titled, "It's all about the food." Fresh. Reliably sourced. Artistically displayed. Those aren't qualities limited to an age group. They appeal to a wider span of people.

In announcing its new store concept, Whole Foods Market talked about appealing to "tech savvy" consumers and offering lower-priced products in a more streamlined store format. Being tech savvy has almost nothing to do with selectivity of what you eat. Food consumers who value an all-organic store are willing to pay a premium price, but still shop for "bargains." Many grocery stores can be ponderous, but Whole Foods Market has a format that is easy to shop and which has been widely copied by other grocers.

As a regular Whole Foods Market customer (and a non-Millennial), I see the chain's greatest challenge as remaining different as competitors emulate what it offers. We drive out of our way to buy meat and seafood at our favorite Whole Foods Market, but make another trip to a nearby New Seasons to buy produce and fruit.

The Whole Foods Market we patronize offers a "tech savvy" Instacart option, where you can call in your order and pick it up and pay for it at a designated check-out line. It's a great, convenient option, but not a substitute for personally looking at the meat and seafood counters for the freshest, most appealing choices and for seasonal specials.

So far, I've never seen anyone checking out at the Instacart line. But I've stood in line at the meat counter along with people of all ages.