Author:Carlie Danielson

CVS Quits Smoking, Scores Rebrand Win

CVS Quits Smoking, Scores Rebrand WinMy mom quit smoking recently, after fifty years of it. The fact that CVS is no longer selling cigarettes had nothing to do with this, of course. But the company’s decision to go smoke-free, now—a month ahead of schedule—had particular resonance with me.

Opponents of this move argue that it’s hypocritical, a stunt. They have a point—but in that case it’s a pretty expensive stunt (more than $1 billion in lost annual revenue). This is a clear example of a brand-driven business decision. In addition to pulling tobacco, CVS has changed its name from CVS Caremark to CVS Health, indicating a commitment to something bigger than themselves.

So how much financial loss is CVS willing to sacrifice for a bold brand promise? Does that mean they’re pulling Frito’s and M&M’s off the shelves? (I hope not.) The store will still carry plenty of products that contribute to major health problems, so can it really be the flagship of health it’s aspiring to?

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Why Large, Complex Organizations Need a Strong Brand Identity

If you read a lot of the branding and naming advice that’s out there on the Internet, it would be easy to think that the only time an organization should worry about its brand identity is when it is first getting started. What should you name your company? How should you position it against competitors? These are important questions for startups and new brands, but the truth is that large, complex organizations are just as often in need of identity strategy.

 

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Color and Your Brand

color and your brandUsing color to form an emotional association with your brand

What can profusion of color tell us about our relationships with brands? We form all kinds of emotional associations with color, and research has shown that the use of color can “increase or decrease appetite, enhance mood, calm down customers,” and even affect how long people think they’ve been waiting for a service.

Some brands hang their hat on color. ING Direct changed its name to Tangerine when it was acquired last fall and embraced verbally what had previously only been a visual part of the brand experience—the ING logo. The French telecom giant Orange built its brand around the color. This may be limiting (you’re unlikely to see a blue logo unveiled anytime soon), but if it’s done right and with commitment such an investment might be worth it.READ MORE

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Think Big: Understanding the Value of Strategic Ambiguity

Whether we’re working on corporate identity, positioning strategy or naming, there’s a term we often use in our work with most clients: Strategic Ambiguity.

Whether we’re working on corporate identity, positioning strategy or naming, there’s a term we often use in our work with most clients: Strategic Ambiguity. It helps clients understand the need to find balance between being highly specific or overly vague in what it is they stand for and how they want to be perceived.

Strategic ambiguity, as organizational communication expert Eric Eisenberg defines it, enables a company to express itself—its mission and goals—in a way that allows “the freedom to alter operations which have become maladaptive over time.”

By being strategically ambiguous, companies who encounter turbulent times in the future can maintain a firm grasp on their identity and goals while embracing change. For our clients, this is key to staying relevant.

How Does Strategic Ambiguity Work?
Eisenberg notes that when air travel replaced sea travel from the United States to Europe, cruise lines survived only because they rebranded themselves as entertainment and hospitality facilities. This broader self-identifier allowed companies to provide new services, such as pleasure cruises and activities on boats that never even leave the dock. Because the cruise industry didn’t pigeonhole itself as a method of transportation, it survived and has since flourished.

In another industry affected by technological change, at least one company failed to identify the opportunity that strategic ambiguity allowed it. At its heart, Eastman Kodak was a chemical company in the business of making and selling film. As technologies changed and digital transformed how we create and consume images, Kodak didn’t evolve to think of itself more broadly. Had Kodak zoomed out and seen itself as a leader in the imaging industry, its future (and current unfortunate reality) may have looked very different.

Taking advantage of strategic ambiguity isn’t a matter of creating a formula, and it takes work. Finding the right balance is a step we help many clients take, and it’s part of what I love about our work. We help our clients make sometimes difficult choices and develop consensus on where their organizations are headed.

Achieving the Best Results
Three tips for applying strategic ambiguity:

  • Know the difference between being ambiguous and being strategic about your ambiguity. When naming and/or positioning your company, you can’t say, “Well, we don’t want to limit ourselves, so we’re going to try to be all things to all people.” You are not all things to all people—and you won’t succeed if you try to be.
  • Make choices. Strategic ambiguity is about drawing lines, and it requires a strong identity strategy. It’s more about who you are and why you matter than about what you’re doing right now. If you can commit to what you stand for, that commitment will actually allow for more flexibility when you’re confronted with change.
  • Think about the possibilities. Find ways to explore what you do now in different contexts and from new perspectives. This will help prepare you to make decisions about where and how you’ll allow yourself to grow and evolve over time.

If you hang your hat on what you do best right now, understand that people will continue to perceive you that way—a year, five years or 10 years from now.

So think big. Just not too big.

Ask Marshall About Strategic Ambiguity for Your Business
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If They Know What You Stand For, Your Consumers Will Love You (and Your Brand)

HeartIn the news last month were the results of a recent study that reveals the world’s 100 most loved companies. The top three brands? The Walt Disney Company, Yahoo! and Google. The study surveyed 70,000 people in 15 countries and measured individuals’ emotional feelings toward a brand. While we’re happy to see several of our past clients on the list, the study poses a great question: How can a company establish enough emotional connectivity to create familiarity and favorability among its audiences?

A company can’t be familiar to, or loved by its customer base if it isn’t true to itself. If familiarity breeds favorability, this might make a good argument to push for a higher marketing spend. But a more fundamental (and less expensive) way to improve and sustain familiarity is to be coherent and consistent in how you tell your story. Customers are people. People trust what they know.

Creating a Trustworthy, Intriguing Brand
Three steps to becoming a familiar and favored brand:

  1. Know who you are. Build a strong identity strategy and you will have a clear mission. Your employees will understand what they’re a part of and your customers will be able to identify with the choices you make. Our founder and CEO Philip Durbrow points out that everyone from the gardeners to the guy who plays Goofy could give a solid yes or no on whether something’s really “Disney” or not.
  2. Walk the talk. If there is a disconnect between what you proclaim yourself to be and how your customers experience you, your brand will cease to be appealing or trustworthy. All the marketing dollars in the world won’t solve this problem.
  3. Find the balance. Once you have an established following, you have to decide how to walk the line of remaining familiar while innovating and evolving as an organization. One of our recent SlideShare presentations, “How to Create a Valuable Company,” demonstrates that a company can be both solid and reliable and dynamic and innovative.

Seeing Success
Many brands struggle to connect with their customers and create favorability because they never take the time to assess what they stand for. One study points out that, more than familiarity just leading to favorability, it leads to behaviors that support companies’ strategic goals. Word-of-mouth marketing, investment referrals—these help companies grow and succeed, and they are more likely to happen for organizations that tell a clear and honest story about who they are.

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Secret Sauce As a Brand

Special SauceLast week, I wrote about B2B branding: Your audience may not be comprised of “consumers” per se, but it’s still made up of people. People have preferences, loyalty and affinity for certain brands.

So how do you make sure your brand communicates what’s unique and special about you? In essence, what’s the secret sauce that sets you apart?

Making Your Own Secret Sauce

Many clients hire us because they’re having trouble articulating exactly what it is that makes them who and what they are. A lot of our identity work gets to the heart of this—helping clients tell their stories. Even if you aren’t embarking on an identity project, you can still follow some simple principles:

  1. Realize that you never have nothing: If you aren’t widely known for your secret sauce, that doesn’t mean you don’t have it. It can be difficult to pinpoint, and even harder to communicate (and often it’s easier to engage someone to help you find it—which is why it makes up a lot of the work that we do). But there is something worthwhile that sets you apart, and finding it is worth the effort.
  2. Don’t try to be something you’re not: If what you’re attempting feels inauthentic, it’ll be hard to make a shift that will turn employees (likely your most important audience) into brand ambassadors. Take Marshall, for example. We may not the hippest kids on the block, but we’re thoughtful, strategic and big-picture thinkers. Because we know this, we’re able to focus on what we do best.
  3. Don’t be afraid of aspiration: You may need to consider how well your identity tells a clear and cohesive story about your company. When you set out in a direction that is aspirational and authentic, you’ve turned identity into a strategic priority, not just a communications tool.

You’ve got a secret sauce baked in there somewhere, and it’s an essential component of your identity that you should use to your advantage.

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B2B Buyers are People, Too

You might think that in the business-to-business space, brand awareness and loyalty is less important than it is for consumer brands.

VMware tattoo

One of VMware’s customers tattooed the company’s logo on the back of his head, a move that demonstrates a pretty personal commitment.

But some branding experts believe that brands matter even more in B2B than in B2C. Why? Many B2B companies compete in a confusing or fragmented marketplace. Often they’re trying to differentiate highly technical offerings by focusing on functional aspects. It’s a cliché of B2B marketing that it’s all “speeds and feeds,” and that connecting on a more personal level is for the consumer realm.

But initiatives that focus on creating value for B2B brands can have tremendous payoff. A Harvard Business Review study on B2B brands concluded that the corporate brand is responsible for an average 7 percent of stock performance. Depending on your market cap, brand equity can mean hundreds of millions of dollars.

People Make Emotional Decisions

Preference and loyalty decisions are not unemotional, logic-driven events—even in the B2B space. Forrester analyst Laura Ramos, who blogs about areas of concern to CMOs, wrote that many B2B marketers still don’t understand that “B2B is really about the people.”

When I was studying integrated marketing in graduate school, one exercise came up time and again: Answer the question: “Do you have a favorite brand, and why?” Responses were mostly consumer brands, and explanations were always fascinating. Ask yourself about anything “Why do I want this or not want it?” Is it the color? Is it the ingredients? Is it what you feel in your hands? Is it the price? Is it the name? You can apply what you learn even to complex B2B products. A client of ours sells sophisticated scientific instruments and faces a competitor whose arguably inferior product has benefited from significant brand investment, best demonstrated by its sleek-sounding name. Even a marketplace filled with highly logical and analytical thinkers can be swayed by the sense that a cool brand makes the product inherently more desirable.

Some of our B2B clients inspire fanatical loyalty that most consumer brands can’t match. One of VMware’s customers tattooed the company’s logo on the back of his head. A tattoo is a pretty personal commitment, but the product enabled this person to feel like a rockstar in his professional life. Professional decisions are emotional choices. What matters in the end is that you’re offering your customers something that matters to them.

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Shifting Perceptions of Branding in Higher Education

Higher educationIn one of my colleague Jon’s recent posts, he wrote about one sign that you may need to reconsider your identity: your industry is changing. One industry we work in frequently—higher education—is currently going through significant change. Societal trends, shifts in funding priorities and emerging technologies are all contributing to increased competition: for the best students, for top faculty, for funding, for leadership and for reputation. Against this backdrop, branding and identity are increasingly important.

The Importance of Branding

“[A] properly constructed brand is essential for any university competing in the modern global education market,” wrote Ian Pearman, CEO of the UK’s largest ad agency, in a recent piece on the importance of higher ed branding (“Universities are brands whether they like it or not”) that accompanies a global study of the 100 most powerful global university brands.

But branding and higher ed have an often uneasy relationship. Research conducted at the University of San Francisco looked at the impact of branding on California institutions (including several of our clients) and found positive correlations between branding and campus identity, enrollment and foundation initiatives. In spite of this, many don’t see a role for branding and positioning in helping their schools achieve greater success.

Overcoming Reluctance

In our work with higher ed clients we’ve sometimes encountered a sense that academia should be above branding. For some, the word itself is synonymous with marketing or advertising, and there is the perception that this cheapens the important work that educators and researchers do. A development campaign created by our client UC Berkeley matched students’ portraits with quotes on what the school meant to them. The fact that “We are not a brand” was graffitied on a poster installation reveals strong opinions about brand in the context of higher education.

There are ways to navigate around this. When working with higher ed clients, we often refrain from using the word “brand” and instead talk about “identity.” This focuses the conversation on the key issues: who you are, what you do and why you matter. When put in those terms, we find that many in academia are comfortable with, even enthusiastic about what our work can help them to achieve.

Helping to Navigate a Complex Landscape

As the educational landscape becomes more and more complex, it’s increasingly important that higher ed institutions think hard about how they can frame their offerings for perspective audiences. I think back to my own experience as someone trying to decide where to attend graduate school. I was living in Southeast Asia at the time and ill-equipped to form a consideration set for what would be an incredibly important life decision. Institutions of higher learning may want to keep themselves above the fray of “marketing,” but by communicating a clear sense of identity, they can certainly help their audiences understand who they are and what they have to offer.

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