brand promise Tag

DACA is an Identity Issue.

DACA is as much an identity issue as it is an immigration one. The effects of decisions today may affect many people’s sense of who they are for much longer than its political news cycle.

We are faced with some 800,000 people who identify themselves as Americans – and why shouldn’t they?

  • Their parents are in America.
  • They grew up in America.
  • They were educated in America.
  • They work in America.
  • They pay taxes in America.
  • They serve in America’s armed forces.

America is the only home they have ever known. If they are returned to an unfamiliar country, they might not even speak the language.   

  • Will their identity no longer be American?
  • What will this do to America’s identity?
  • What will this do to America’s brand promise?

Britain recently went through an identity crisis with Brexit. The British brand cut off the European part of its identity. And the consequences for many Europeans and Brits alike has been a sense of broken promises. The DACA identity issue raises important questions about America’s identity and its own “brand” promise.

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trump brand

Does Identity Trump Brand?

In reading “How Will Trump Rebuild His Brand? published through Knowledge @ Wharton, we need to think about Trump’s brand and his identity, and how both may affect his upcoming presidency.

It can be confusing when the word brand is used to mean so many different things. Brands convey a promise that people come to rely on. The Trump brand promises ornate, luxurious, exclusive products or experiences at a premium price. It attracts prosperous clientele that are drawn to these qualities and who can afford these experiences. It is an appropriate brand for up-scale products and properties, because it is very well known, and it can command a premium price. Hence the brand has value to properties not even owned by Trump, and for which some product and property owners have been willing to pay a royalty.

Identity is different from Brand. Identity is about the reality of a person or company – who he, she or it really is – where brands are externally driven to appeal to others, identity is inner-driven. Identity flows from the reality of who the person or organization is – their innate driving force. Identity is bigger than brand. The identity of a corporation, organization, individual, or even a presidency may develop several “brands” aimed at different audiences. It can be especially powerful if all the brands stem from or reinforce the identity. The identity of Proctor & Gamble is characterized by a singular drive to provide quality household products that improve people’s lives. This is their driving force, but P&G has many brands (Crest, Tide, Pampers, Gillette, etc.), all shaped to appeal to different external audiences, yet all reinforcing P&G’s identity.

Donald Trump’s identity is more multi-faceted than his luxury brand. Trump’s identity should not be confused with his luxury brand. If Donald Trump’s drive for power is sincerely about populism, uniting the country and creating prosperity for all, and if he delivers on these goals, President Trump will be recognized and appreciated for not just luxury goods and properties. To accomplish his objectives, he may need to create a healthcare brand, a tax reform brand, a foreign trade  brand, and other “brands” shaped to appeal to different audiences. And these brands should all reinforce and deliver on his drive to “Make America Great Again.” If they don’t of course, all of these brands will lose credibility along with the presidential identity.

In conclusion, it is not only possible, but necessary, that a president serve many different audiences, and good branding can help, but the Trump luxury brand alone is not enough. What matters most is Trump’s Identity, who he really is, what he truly cares about and what he aspires to accomplish.

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wells fargo

What happens to a brand when a CEO leaves?

The answer is, it depends. On the:

  • Stature of the CEO in the business community
  • Perceived influence of the CEO on the company – good or bad
  • Swiftness with which a respected replacement takes charge

The recent resignation of Wells Fargo CEO John Stumpf could mean one of two things for the Wells Fargo brand:

  • The company is in trouble and his resignation is symbolic of a bigger problem
  • His resignation signals Wells Fargo’s commitment to fixing what is wrong, and is therefore good news

To employees, investors and customers alike, a CEO’s resignation might result in the loss of some trust in the company, the loss of some competencies and valuable connections the CEO acquired while in office, the loss of some institutional memory, and a potentially demoralizing impact on the organization.

However, these consequences may be overridden by showing that the organization has strong principles, that it holds its executives responsible for their actions, and that it is taking steps to prevent similar problems. The departing executive takes the perceived problems of the organization with him, while the new executive starts with a provisional slate.

When our client Boeing had to let its CEO go in 2003, the action created an opportunity for Boeing to reframe its story and deliver a bigger, more positive vision for the company. By drawing attention to a broader promise and a renewed commitment, the loss of a CEO catalyzed the brand’s ascendancy.

In other cases, the CEO embodies the company brand, and his/her departure signals a major change in the brand’s promise. Virgin America is a shining example of this – while Richard Branson was not allowed to be CEO of the U.S. based airline, he was every bit the personality of that brand. The sale of the company to Alaska Airlines, and Branson’s subsequent departure from the scene, has investors and customers very worried about the future of their beloved airline. Virgin America has done its best to reassure customers through communications and consistency of experience that their brand promise is here to stay. Like Wells Fargo, time will tell if they can fulfill that promise.

Our advice to Wells Fargo in this time of transition is to commit to a new story, invest in making a renewed, valuable promise to your customers and deliver on that promise in actions, not just campaigns. Seize the opportunity to make the brand stronger, rather than just hoping this loss of confidence will be forgotten with time.

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It Never Pays to be a Copycat

It Never Pays to be a Copycat.

A recent WSJ Article trumpeted “Copycats Rule the Skies.” It was about how the three largest U.S. airlines have all become so much alike.

Why are the Delta, American and United brands so much alike? Patrick Moynihan, the former Harvard professor and U.S. Senator had a theory called, “The Iron Law of Emulation.” His theory held that nations that competed against each other became more and more like each other. This certainly seems to be the case with our airlines, hotels, banks, etc.

Moynihan pointed out how the U.S. and Russia once emulated each other: We got the bomb, they got the bomb; we got intercontinental missiles, they got intercontinental missiles; we got nuclear submarines, they got nuclear subs, and on and on.

During my 20 years at Landor, we designed the brand and identity strategies for dozens of leading airlines. Our purpose, always, was to differentiate each airline in a way that was relevant, true and compelling. To create a preference or command a premium, we built on each airline’s unique brand characteristics which were often its national characteristics: British Air was about their understated global competence. Singapore Air was about the pride that Singaporeans take in providing personal service. Alitalia was about Italian style. Hawaiian Air was about sunshine, flowers and relaxation. These identity strategies influenced all the decisions each airline made. Whom to hire, how to train, what kind of fleet to operate, and what passenger offerings and style of operations would reinforce their particular identity.READ MORE

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Great Branding Starts with a Promise

Recently in Fast Company Design, I read an article that claims “great branding is invisible,” and goes on to make the point that the little details, like the satisfying thunk of a closing BMW door, or the stitching in a Gucci purse, create and reinforce our relationships with great brands.

The article also makes the point that a catchy tagline or attention-getting logo is relatively unimportant in establishing that brand relationship in the first place.

I agree with these observations, but there’s something missing. Thoughtful details – the “invisibles” that create great brand experiences – are only meaningful if they come from a unique and meaningful central promise. What do you aim to provide that nobody else can? Why does it matter? If you don’t have an answer to these core questions, all those details have no center of gravity. They become tactics that can be easily copied and commoditized.

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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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Brand Impact of Mergers

The Brand Impact of Mergers

Last year saw a n ear-record high in M&A activity, which at $3.5 Trillion was the highest activity recorded in seven years, according to the New York Times. Tiny startups (WhatsApp: $19 Billion) and major blue chip companies (DirecTV: $49 Billion) were swallowed up by larger acquirers for astronomical sums.

The conventional wisdom fueling these buying sprees goes like this: once a company gets to a certain size, organic growth becomes very difficult to sustain. Acquiring into new areas or capabilities is a much faster route to growth in revenues, capabilities, and ideally profitability.

But what happens to brand value in these transactions? How should brands be managed to retain or augment their combined value? Which company gets to keep its brand name and promise, and what happens to the other? In our experience, too few companies invest in the upfront strategic thinking and decisions required to get full brand value, and hence business value, out of their mergers.

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What If Your Brand Isn’t “Cool” Enough?

cool sunglasses
A large enterprise software client of ours recently decided to make a big bet on a new business direction. People internally were concerned that the new direction would never be successful unless it had a different brand as well—because the corporate brand just isn’t “cool enough.” Is it true that it’s uncool to be big and established? Does the small, “cool” newcomer win every time? And what makes a brand “cool” anyway?

Our opinion—your “cool factor” is not the point. Instead of worrying about being cool enough, established brands should focus on establishing clarity about who they are. Nobody is going to be enthusiastic about something they don’t understand. Large companies often become too complex to be easily understood or related to. Brands that have been acquired, or new “skunkworks” projects, want to get out from under this complexity, just to have a little breathing room.

In our experience, enterprise software customers are more concerned with effectiveness and responsiveness than they are with “coolness.” Is the product easy to use? Is service easily accessible? Does it save time and resources, and increase profitability? In other words, what matters is fulfilling a meaningful promise to customers.

3 Cures for the Uncool
A large organization can easily begin to feel slow, bureaucratic and hard to do business with. If that’s the case, how can you shift perception of your brand? Three things you need to demonstrate are:

• Responsiveness
• Relevance
• A sense of inspiration

Sometimes a new brand initiative with some link to the parent may be appropriate. But don’t underestimate the value and credibility a brand with longevity can lend.

Lessons From Established Brands
A few years ago, we worked with Boeing, a globally known brand founded nearly 100 years ago, to refocus its internal positioning. A number of internal groups, essentially acquired companies, were clinging to their old brands to try to carve a special niche for themselves within giant Boeing. We succeeded in convincing these brands that they were much better together than they were apart. As Boeing, they were the undisputed global leader in aerospace. Individually, no single brand could claim anything near that stature.

Other large companies have managed to maintain clarity about who they are, and to deliver what their customers want in highly responsive and relevant ways. As a result, they retain a cool factor, not because they are the shiny new object, but because they are relevant, responsive and inspirational. Think about Disney, Apple, Nike and Coca-Cola. The latter was recently awarded the first ever CLIO brand icon award. Not bad for a 100+ year-old (not to mention huge) brand!

The bottom line—if you make your brand relevant, responsive, and inspirational, your customers make it cool. As long as you are fulfilling a meaningful promise in a unique way, you have a great start. Just be sure you communicate that promise as well as you deliver it.

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