Growing Pains - The Blog of Growth Strategies Group

Posted by Growth Strategies Group in Dallas-Fort Worth-Arlington, TX on Dec 05, 2006

Monday, October 16, 2006

undefined

Cruisin' For A Bruisin' ?


Recently I answered a poll by Advertising Age Magazine. Thought I'd share it with you. The first sentence is the poll question.

Does Tom Cruise's firing signal a shift in celebrity culture as consumers become "stars" of their own films, blogs and MySpace pages?

The short answer is yes. But how is anyone's guess. Celebrity is relative, often fleeting. I can have my "15 minutes of fame" for any number of reasons, but will it have lasting effect? That is the test of celebrity even in its most lofty manifestations, such as Hollywood stars or star athletes. The new media are changing how we experience the world. Since we're in the middle of the experiment, there's no way to give it a "historical" perspective. Suffice to say, like all change, things are changing, but what that ultimately means will, I suppose, have to be left to the futurists like Faith Popcorn. And even her predictions haven't been all correct.
undefinedundefined undefined

Thursday, September 28, 2006

undefined

Saturn Setting

Positioning guru Al Ries wrote a wonderful article back in 2005 about "The Sad and Unnecessary Decline of Saturn." How the automaker fell prey to parent General Motors' strategy of expanding the brand instead of expanding the brand's market share.

The article was one of those where you say, "I thought of that all along. Wish I had written it myself." So paste this link into your address bar and read it. ( http://adage.com/columns/article?article_id=46746 )

Even though Al Ries stole my thunder, the strategy point needs repeating for marketing managers in all kinds of categories, and I've tried doing that in my speech called "Walking Through The Brand." And I wonder if anybody really gets it. Since I don't expect to be getting a call from GM, Ford or Chrysler at any time, I suppose I can take aim at them here.

Automakers, especially of the American variety, have been the world's worst marketers when it comes to understanding what their brands are all about. In their rush to capture market share they have rushed to judgment about what people want in a car, trying to fulfill the desires of everyone...from the small, "green" car to the guzzler SUV. As Ries says, they have expanded the brand instead of expanding market share.

Sure, it's quality and style and all that stuff that sell a car. But, like a house, a car is still a symbol of one's worth, self-worth and salve for the psyche. But now, in the present state of auto affairs, you can own a Cadillac and be from a somewhat lower economic strata, or you can be a SUV sportsman without touching a hunting rifle, or a GPS-guided luxury car owner. Or all of the above. Ad infinitum.

There are a few notable exceptions. A Hummer comes to mind immediately. Yet with Saturn, who has "broadened its portfolio" to include a larger sedan and an SUV, the brand's promise has been blown out of the proverbial tailpipe.

And so has Cadillac's, among others. The venerable Cadillac brand provides little psychic reward for owning one. So now, the old saw of "its the Cadillac of....(put a category name here)" no longer applies.

What do you think?



Link
undefinedundefined undefined

Wednesday, August 09, 2006

undefined

Have The Courage To Get A Life

Today at a meeting at Square One we got into a conversation about how difficult it is for young account people to say No to their client(s). The discussion context was about how people in our industry sign up for workshops that would benefit them personally and their client's business as well, and then don't show up at the workshop or event because "the client called with a crisis."

To me, a person who for years not only jumped when the client called but also asked how high, I can empathize. But not sympathize.

As I learned the hard way (isn't that the way one learns?), a strong, lasting client/agency relationship is truly built on mutual respect. I learned (the hard way) that if you tell your client that you are not going to be available for a particular day or time, and ask them to put that on their calendar as a reminder, your client will respect your needs. Then, if there really is a crisis, either have someone who covers for you while you're off, or have a plan for emergency communication. (As you and I have learned - the hard way - those crises are often not really crises.)

Mutual respect goes a long way to keeping a relationship on track. As a 42 year veteran of our industry, and a marriage that has lasted that long, I can attest to mutual respect being the basis for great relationships. So, to those account service people who haven't quite learned the art of asking for it, here's my advice.

1. Have the courage to tell your client when you need "time away," for whatever reason - personal, vacation, or business. Your asking demonstrates the respect you have earned for the good service you have given.
2. Always have someone who will "cover" for you in times of client need or crisis.
3. Realize that you are, from time to time, expendable. And that's a good thing. It means your client not only respects you, but also your associates.

Now...go out there an - Get A Life!
undefinedundefined undefined

Monday, August 07, 2006

Walking Through The Brand # 1 - Brand Experience Transference

Many brands have problems extending the brand promise to other categories. Target seems to have accomplished this almost seamlessly in their SuperTarget Stores.

For those of you who are Ries and Trout positioning advocates, you know that brand extensions can be a trap. But in TargetÂ?s case one store flows effortlessly and seamlessly between one and the other. They have accomplished what many haven't, including Wal Mart and Sam'?s. And KMart isn't even in the ball game.

Super Target is one store with a lot of stuff. I DO expect more from them and I do think I pay less. I think part of the payoff results from the ?Target Look. Your experience of the store, as you walk through it, is a total experience.

That is because I think the experience in-store exemplifies your experience from their advertising. Both are open, colorful. fun and its totally communicative. I can see virtually every department in the store wherever I'm standing due to open layout and great, big signage. The store is not only colorful, but clean, too.

Just like their advertising which opens up and lets you into it, you always know its a Target TV spot the nanosecond it comes on the screen...even when you're not looking at the set.

When you walk into the store, it is almost like walking into the television spots. It is just as open, inviting, a bit crazy and certainly as colorful as you would expect it to be. That is what I mean about "?Walking Through The Brand."? A brand only fulfills its promise, totally, when you can, in essence, "walk through the brand." It envelops you. You feel it. Like it. Want it. Just how many brands today evoke those kinds of feelings? Few, I dare say.

Are there areas of improvement needed at Target? Yep. The people experience has been uneven at times. My impression has been that the food side people get it. They seem more into their jobs and "live the brand", while the cashiers are uneven in their "delivery." Sometimes they are very courteous, but often times as not, they are indifferent. For Target to hold onto its promise they wil have to get that worked out.

Here's one case where the extension trap hasn't trapped the brand experience, but has actually enhanced it.
undefinedundefined undefined

Thursday, July 27, 2006

undefined Mergers are
killing competition.
Or, are they?
With all the corporate mergers that are garnering the headlines, and Â?downsizingÂ? actually being thought of as a word to put into thdictionaryry,Â? we may forget that oourour free enterprise systems still generates more choices for consumers than any other system.

Earlier this century, consumers had far fewer choices in products than they do today. The basic rule was one size fits all. But with the advent of the Information Age, there has been a remarkable explosion in the types and varieties of products and services from which to choose.

Consider that between 1970 and the latest statistics available:

•The number of new car models jumped from 140 to 260, while the variety of vehicle styles increased from 654 to 1,212.

• The number of breakfast cereals on supermarket shelves climbed from 160 to 340.

• The number of national soft drink brands to chose from leaped from 20 to 87.

•The number of over-the-counter pain relievers leaped from 17 to 141.

• Even the number of dental flosses being produced went from 12 to 64, and the choices of contact lens types went from one to 36. Meanwhile, the choice of running shoe styles blossomed from five to 285.

But if that increase seems large, consider that there are now
about 250,000 software titles -- compared to zero in 1970.

So what is really happening?

• Competition in all categories is as intense as it ever has been, even more so.

• While industry consolidations may initially appear to limit consumer choices, more often than not they spawn new entrepreneurial competition. There's almost always someone who thinks they can do it better. Witness the growth of Unix being developed on an open share basis even with the giant of all giants, Microsoft, peering over their shoulders!

Fast isn't fast enough. Today you have to be superfast. Apparently in the information era it is easier to develop new products with values that differentiate enough to be valuable to consumers and businesses. The problem at this point is that it takes a while for this new products and services to find their value level in the scheme of things. So, one day a particular product may be hot just because it is. As it is used, or other products seeking consumer attention appear, what was once hot may not...be hot.

And the cycle repeats itself.

Related Links

GSG Growing Pains Blog