Tuesday, October 5, 2010

Don't Be An Oxymoron. Focus on the Little Picture.

Recently, I was told by a pair of company leaders that I was "too focused" in defining the brand. They proceeded to say that we needed to "broaden the focus." Isn't that kind of like saying, anarchy rules, barely dressed, friendly argument and one size fits all?

Yes, “broaden the focus” is an oxymoron.

It’s not the first time I’ve been told by executives and even colleagues that I’m too narrow in defining brands. I’ve lost count of how many times I’ve heard things like, “there’s no way everything can live the brand.”

Oh, really?

Shame on Pixar for only focusing on family movies and sticking to it’s “less is more” approach. Did you know it takes five years from concept-to-completion to make a picture? That didn’t seem to bother Disney, which shelled out $7.4 billion for the company.

Pity the Whole Foods fools for focusing on organic and ringing up profitable quarters and shares at a two-year high even in a tough economy.

And I’m guessing the end is near for Southwest Airlines, whose barebones (but fun) focus the past 37 years has yielded 37 consecutive years of profitability and counting.

Then again, Pixar isn’t really focused on movies nor is Whole Foods on food and Southwest on flying. If they were, Pixar would make movies for adults, Whole Foods would stock as much non-organic as organic foods, and SWA would nickel and dime customers like every other airline. No, they are all focused on building brands. And as such, they are focused on the “little picture.”

You see, I was also told by one of the aforementioned leaders that they had to look at the “big picture.” I believe he was insinuating that I wasn’t. I wonder if he would have approved Hooters Airline, Coors Rocky Mountain Spring Water or Bic Underwear?

Okay, you could argue no one in their right mind would rubber-stamp those ideas. Except, that CEOs did. What about examples that don’t seem so obvious like a Mercedes for the price of a Camry? Even Forbes Magazine wasn’t buying it:

“Finally, an inexpensive Mercedes is an oxymoron, since the three-pointed star is all about prestige. A Mercedes is something people have always felt they had to work for; to "achieve" a Mercedes for a mere $26,000 might undermine the value of the brand.”

Forbes’ concern was validated when the Mercedes brand itself suffered and the cheap Benz was ultimately sent to the scrap yard.

To really be focused on the big picture means to really focus on the small picture. But this is counterintuitive to conventional thinking. Broadening focus might just work in the short run, but inevitably, you undermine the core brand and over time your brand will lose its meaning and market share. Like Boston Chicken, which was looking big picture when it expanded its menu beyond chicken and even changed its name to Boston Market to be all-inclusive. Shortly thereafter it went bankrupt.

Statistically, nine in 10 expansions fail yet companies continue to think big picture. Did you know that Papa John’s started out selling pizza, subs, cheese steak sandwiches, fried vegetables, etc? When it found the courage to slice off everything but pizza and think small picture, it eventually became the third largest pizza franchiser in the world.

And how do people emotionally connect with the big picture? Take cities for example. Atlanta is touting itself as “A City Too Busy to Hate.” Huh? Broad, confusing and uninspiring. Then there’s, “What Happens in Vegas stays in Vegas.” Its focus is small and crystal clear. Now wipe that smirk or smile off your face.

If category-dominating, often category-creating laser focused brands like Apple, Facebook and Fox Newschannel aren’t enough to convince you that focusing on the little picture – i.e., your brand - rather than expanding is the key to dominance, then you’re just clearly confused.

These are my Guts Feelings.

Monday, June 21, 2010

Southwest Airlines: Oh Yeah, It's SO On!

Southwest Airlines continues to be the darling of domestic airline brands and the apple of my eye because it continues to be the perfect storm of business model and brand model.

For a little perspective, Southwest has never strayed from it's low fares, no frills, lots of fun image. All it's done is produce 37 consecutive years of profitability. How many other airlines can say that? How much has the industry changed since Southwest first took to the skies? Over 200 domestic airlines have either merged, been taken over, or are now extinct.

But over a year ago, this category killer took its brand into the stratosphere when it launched its bags fly free assault. Talk about kicking competitors when they are down. It was more than just guerilla warfare and great marketing strategy. It was a brilliant example of creating more brand separation from not only competitors but an entire industry. And every nickel and dime move other carriers make - some are contemplating charging to use the toilet or making you pay by how much you weigh - the more SWA looks like a hero.

So, what does Southwest do for an encore? Separate itself even further from all other domestic pretenders by declaring you can only find fares and book tickets on swa.com. Doesn't this fly in the face of conventional and contemporary thinking that you must be everywhere to be successful? Au, contraire.

Brand strategy legend Al Ries (The 22 Immutable Laws of Branding) talks about the Law Exclusivity. Essentially, two brands cannot share the same image. He couldn't be more on point. However, I take that law a step further when talking about exclusivity: Mass availability does not always mean mass consumption; demand can create more desire.

CBS doesn't repurpose its programming on Hulu, a site that allows you to watch episodes of some network and cable programming after it airs. Yet,, CBS once again won the coveted A25-54 demographic amongst all other broadcast networks this past season. How many jewelry stores actually carry Rolex watches? Though often imitated, you have to go to high end shops to purchase one. And it's doubtful you'll find Cuban cigars next to the register at your local convenient store. If you can get your hands on them, a box will set you back as much as $500-$700.

So, by not allowing itself to participate on sites like Orbitz or Travelocity, Southwest is not only physically separating itself further from competitors, it perceptively is making its brand more unique by not blending in with the fray.

The only downside? It doesn't make it easy for you to conveniently compare its fares to competitors side-by-side? But Southwest Airlines never portends to have the absolute lowest fares. Rather, all the things it has systematically done through the years from serving peanuts, group seating and no charge for bags, have conspired to make it the best overall value in the air and a brand to be envious of no matter what category your product or service is in.

Southwest likes to say, "It's On." When you consider the powerful impact all these moves have on customers and the brand damage it continues to inflict on reeling competitors, I'd say "It's SO On!"

These are my Guts Feelings.



Thursday, February 25, 2010

Feed the Beast, Starve the Brand. Just ask Toyota.

Domino's. I'm not talking about a Pizza chain. I'm talking about all the ones falling at Toyota.

It's gone from pristine image to recalls to hearings on Capital Hill to now being investigated by a grand jury and the SEC, and rapid evaporation of customer satisfaction at its dealership as people wait days - even weeks - to get their defective vehicles fixed.

Poor Toyota.

But this all could have been easily avoided if it would have followed one simple premise: Make brand decisions not bottom-line decisions.

When you make most or all of your business decisions based on boardrooms and the bottom-line, you are focused on the company. When you make your business decisions based on your brand promise, you are focused on the customer. In the immortal words of Wal-Mart founder Sam Walton, "the only person that can fire me is the customer." Are you listening Toyota?

By focusing on itself, failing to listen to initial customer complaints, sourcing inferior materials, neglecting to issue recalls sooner than later, covering up and trying to cover its tracks, all in an effort to save a buck, Toyota has cost itself dearly in the form of brand damage. I saw a figure that estimated it's loss of brand equity in the billions. That's a multi-billion dollar punch to the gut that is already hitting them in the wallet and could take years to recover. If ever.

When you choose bottom-line over brand, you also might as well hand over your playbook to your competitors because eventually you will lose. In fact, this could be the best thing that ever happened to GM and other American car companies. Whereas Toyota failed to knock out it's American brethren when they were being bailed out by the government, GM has been given another at bat. But I wouldn't just swing away at reliability and dependability. I'd hit 'em where it really hurts: Trust and transparency. If customers believe in you, there's a good chance they will believe in your products.

The Toyota meltdown tees up another opportunity for me to talk Southwest Airlines. It's business model is its brand model and vice-versa. That allows it always stay focused on the customer and continue to profitably soar.

Remember: when you feed the beast, you will starve the brand.

These are my Guts Feelings.

Monday, December 14, 2009

What You Can Learn from A Weekend Bartender About Building An Authentic Brand

My date and I wanted an after-dinner drink Saturday night. We ended up in an older, not-particularly-trendy but eclectic part of town. I had designs on a place but it was closed for a private party. We wandered down the street and stumbled upon a small restaurant, one of those places with painted tin ceilings, cracked plaster, limited seating, and a menu that changes daily. We bellied up to the small coffee/wine bar for our nightcaps.

Our bartender wasn't exactly warm. I wouldn't call him cold either. He was more matter-of-fact but well-spoken. Between sips of Grenache and her Italian red, we struck up a friendly conversation with him. It wasn't too busy so the banter went on though he continued to work behind the bar.

He mentioned that he only worked weekends, which led me to inquire about his "real job." This 30-something is in the house-flipping business. You can probably guess my next: "How are you doing in this economy?" I had come to the preconceived conclusion that he must be moonlighting to supplement income.

"Very well," he replied.

It wasn't the answer I expected. When things aren't going well, most people try to hide it (except on Facebook). But he seemed genuine. I began to dig, believing there might be a brandecdote to be had and shared with you.

His name slips me now (more on that in a minute) but it seems this entrepreneur has carved out quite a nice little niche. Flipping houses doesn't do justice to what he does.

He noted it takes him about six months to finish a home and he works on only one at a time. He's clearly not about the quick turn and volume. He also does most of the work himself, which you could see from his hands. Both answers lead me to believe he has good margins, a good indicator of a strong brand. Remember, specialists can charge more than generalists.

As the discussion progressed, I began to wonder if he realized he had been following many of the key laws that create and govern the most powerful brands. If not, he certainly has the instincts.

He's definitely laser-focused. He only rehabs houses in a few square-mile radius of a somewhat historic area. He admitted to having strayed to a few other neighborhoods in the past but realized it wasn't the same for him. He is back on his turf and committed to staying geographically limited. If only Coors and the show, Who Wants To Be A Millionaire, along with so many other brands, realized that mass availability doesn't always equal mass consumption.

I don't claim to be Bob Villa but I have some baseline knowledge about home improvement. It's clear, he does not cut corners. He also tries to salvage original materials - floors, walls, even windows if possible - to maintain the original charm. Yet, he transforms them into modern, efficient homes.

There's another unique aspect to his brand: It seems he already has the buyers secured. Any unique brand needs a unique business model, like Southwest Airlines and Google for example. In fact, brand and business model should be one, not separate. While I don't know the particulars of his, I surmise clients have most of the skin in the game, allowing him to operate somewhat free of the financial pressures that everyday house flippers face.

His target audience is also narrowly defined. I get the sense they are somewhat affluent and desire this bedroom community for all it's neighborhood charms. They are also willing to pay for maintaining the integrity and originality of the home but want and need modern conveniences. He's currently working on a home for a Kansas City Chiefs football coach.

In essence, he doesn't work for home buyers. He works with clients. Again, reading between the lines, I sensed they find him. If you have a powerful brand, you don't need to shout. People will hear the whispers of others and find you. Starbucks, Google and YouTube are testament to that idea, having all launched with no advertising. To this day, they do very little of it.

When you create a focused, unique brand, you don't have to work as hard at the marketing. It speaks for itself and others will do the talking for you. Conversely, when you create an average-to-above-average product or service, be prepared to bullhorn your way in front of people.

Even the biggest marketing and advertising budget is no guarantee you'll be successful. Just think about products that have launched with million dollar advertising blitzes and flamed out like WebTV, Kellogg's Breakfast Mates, and of course, New Coke.

Before leaving, I asked if he had a Web site. Nope. Business card. Nope. Which explains why I don't remember his name. More importantly, I know what he does because it so stands out and how to find him. I recognize that not everyone can operate this way. But he's doing just fine without a Web presence or business card. His calling card is his reputation, which is built by having a truly distinctive product or service and staying true to it.

As to why he bartends on Saturday nights? He says it's because the owner is a friend. He added it provides a little weekly break from his busy life, which includes a wife and two kids at home. Since he's only working one night a weekend, it really can't be for the money. Then it struck me. This low-key, savvy entrepreneur is doing it for another reason: It just so happens this restaurant/bar is around the corner from where he lives, which just so happens to be the same neighborhood in which his brand is alive and well.

He has built an authentic brand from the inside out. Smart guy.

These are My Guts Feelings.

Monday, October 26, 2009

Two Brands, Different Decisions

A former television news media client of mine just recently switched Internet Service Providers. It got a cheaper deal. Hey, who isn't looking to save a buck where they can in this economy.

That same week, there was major breaking news in this market. The body of a missing 9-year-old girl was found plus an arrest. My former client was all over it on its Web site. Immediacy and responsiveness are critical drivers of its brand mission. That laser focus and commitment to living its brand mission the past few years are the reason it is now the viewers' go-to source in the market for breaking news and weather.

Wanna guess what happened when the masses came looking for late-breaking developments on its Web site? A door slammed in their faces. A "do not" enter sign. A broken promise.

You see, when it paid more it got more bandwith. Now, it pays less and gets less bandwith. The Web site shutdown from too much traffic.

Wanna guess what information-hungry consumers probably did next? They went elsewhere. To competitors. And that leaves a mark.

You see, consumers don't care about your excuses. They want what they expect from you - what you've promised - each and every time they need it. Break that trust enough and they will ultimately break up with you.

Station ownership is private equity. Definitely bottom-line thinkers. Can't really blame them for trying to run lean. But they are shooting themselves in the foot. By nickel and dime-ing it, this news brand, after spending the past couple years earning back viewers' trust, has taken the first step toward breaking its contract with its customers. Isn't it customers that ultimately pay the bills and help you realize a return on your investment?

Now, some contrast. Last week, a new online-only news Web site, the Texas Tribune (http://www.texastribune.org/), went live. A few days later, in its own back yard, the tragic Fort Hood shootings.

The Texas Tribune could have covered it and in person. But it didn't. Why in the world wouldn't it?

"It wasn't our story. Should we have been just one more news organization that rushed to Fort Hood? I don't think so, " said reporter Matt Stiles, who joined Texas Tribune from the Houston Chronicle.

"We're about public policy and politics," said Evan Smith, one of the founders of the new not-for-profit. "What I wasn't going to do was send someone racing up the Interstate to cover something, however important, that wasn't ours."

Let those two quotes sink in for a bit.

Here is a brand-spanking new brand that could benefit from sampling. But instead it made a brand decision, not a bottom-line one. Time will tell how successful their enterprise will be. But it's off to a good brand start.

First, it appears the Texas Tribune has done an excellent job of immersing its staff of 12 mostly seasoned, enterprise journalists in its brand. They seem to grasp who they are and who they aren't. The Texas Tribune is creating it from the inside out, the only way to build an authentic brand and insure a consistent experience each and every time, at every point of contact, for customers and prospects.

Second, reminiscent of Southwest Airlines, it has a unique business model (funded by investors, endowment and donations) that allows it to be a brand first and foremost.

The Texas Tribune early on gets that your brand should be your most valuable asset, the thing you protect at all costs. That's THE real bottom line.

These are my Guts Feelings.

Kurt Bartolich
Founder, Brand Internalist
Guts Branding
www.kbartolich@gmail.com

Friday, October 9, 2009

Why Integrated (Insert Marketing or Brand) Is Backwards Thinking - FOLLOWUP

I read a review about the integrated marketing conference (see my previous blog) in the KC Star this morning. One quote in particular by a conference organizer got my dander up: "Your brand is not what you say about yourself. It's about what others are saying about you." She was referring to the impact social media has today on brands.

I guess she'd better get busy alerting the folks at Google, Nike, Volvo, Ritz-Carlton, OnStar, Coca-Cola, EA Sports, BMW, YouTube, Victoria's Secret, FOX Newschannel, Zappos, Southwest Airlines, Verizon, Maytag, Apple, etc., etc., that they should shut up now and stop force-feeding their respective messages about safety, driving experience, conservative values, freedom, dependability, etc., down our throats.

But let's not let facts get in the way. Like, virtually everyone of those brands I listed, that continue "pushing" out to consumers, dominates it's category.

I get that social media has changed the landscape of marketing. It can create groundswell, both good and bad, and you should have the cup against the social media wall to know what's being said about you. But I liken it to producing a commercial: When editing, you start with the offline or basic edit followed by the online or final post. You would never go to air with just an offline edit. So, why would you make decisions based on social chatter that has no controls in place for the sample, weighting and statistical accuracy?

If you are seeing or hearing things about your brand in social media venues, by all means, investigate. Just substantiate it. The woman in the article also noted that blogs are influential but lack credibility. I too have seen this in research. To draw a parallel, in a study conducted a couple of years ago by my former employer, Frank N. Magid Associates, Inc., a question was posed to Millennials (also loyal viewers of) about The Daily Show, and if it influenced their political points of view. It was an overwhelming, "no." One respondent went so far as to say, "it's on Comedy Central after all." People are smarter and savvier than marketers give them credit. Aren't Facebook and Twitter really just condensed blogs?

Building a brand has always, and will always be, a joint venture, driven by the company first. That's because a brand is a promise. It's the company that initiates the handshake. Smart companies do their homework first by finding and exposing the gaps - and unmet or under served needs - in the market place, then reaching out. The consumer's role is to help dial in, and articulate back, important things like what it means to them, if it's satisfying their desires, if it's fulfilling the promise, if it's veering off course, competitive perceptions, etc.

These are my Guts Feelings.

Kurt Bartolich
Founder/Brand Internalist
Guts Branding

Thursday, October 1, 2009

Why Integrated (Insert Marketing or Brand) Is Backwards Thinking

I recently received an email invitation to an "Integrated Marketing" conference in my hometown. From the description, it promised that attendees would experience the future of marketing.

Actually, my first exposure to the term, "Integrated (insert brand or marketing here)," was through a young woman fresh out of college who joined the same company I was working for a few years ago. She often spoke about integrated brand and her desire to become more involved with it, and to get our clients to practice it. I had never heard of the concept until that moment. I admit I didn't quite understand it.

Perhaps, I was naive. Had my head buried in the sand. Maybe, I was just too old school for those super-smart Millennials.

But I had a hard time believing any of those things to be completely true because many of my clients were in rapid ascent mode, chewing up large chunks of market share and spitting out competitors. More importantly, they were building strong foundations to sustain their trajectories.

Instinctively, it seemed to me, integrated (insert marketing or brand) was another of those new-fangled buzzwords or phrases that comes out of nowhere but everyone starts using like, vertical strategy, optimization, value justification, etc. Marketers...gotta love 'em. Great at pilfering, repurposing and repackaging.

My gut reaction to the phrase, integrated (insert marketing or brand), was "really?" That's because I've ALWAYS practiced - and counseled clients - that their brand is their strategy, and everything they do, every decision they make, every program they initiate or system they build, every person they hire, every campaign they create, every dime they spend, etc., should be birthed and governed by their brand mission. If you haven't been thinking this way all along, there is a good chance you are not the dominate brand in your category. If you aren't thinking this way, and you happen to be the leading brand in your category, you are probably on top for reasons out of your control. Regardless, you are vulnerable.

Let me further explain: By embracing the notion, integrated (insert brand or marketing), you are essentially buying into the idea that you must fit together all of your company's existing pieces to create one idea or image. The biggest flaw in this thinking is believing that you can simply fit those pieces together to form the same image. Chances are, your parts and pieces were created independently and tactically to address a particular and present concern or need. Over time, they stack up. Stacks of unrelated things add up to confusion in the mind.

Essentially, integrated (insert marketing or brand) is backwards thinking.

That's because brand is the all-encompassing thing. Brand is your strategy. It comes first. Therefore, everything you do should flow forth from your brand, not be cobbled together to fit it. Your brand should dictate all the pieces you create. If this isn't the case, it's going to take separation, not integration, from those things that don't fit the brand, and the formation of new things that do fit it, in order for all of your parts and pieces to naturally form that single (and hopefully, distinct) impression.

Brand should also be your business model. Few brands were ever born from a spreadsheet. Though, many have been killed by one. Southwest Airlines is a terrific example of this premise. It's business model has always been about efficiencies. It makes no bones about it. SWA also leverages it in ways to create a fun, easy, and hassle-free experience for customers, whereas other airlines, that are now clamoring to streamline, are making customers feel like victims of their inefficiencies...and appearing to be greedy. Southwest's latest assault, the campaign about bags flying free, is brilliant. It was born from its brand mission and provides stark contrast to what virtually every other carrier is doing. SWA continues to separate itself in relevant, meaningful ways.

Southwest is also a shining example of creating a culture that bleeds its brand at every single point of contact, so promise and payoff are always one. That's how you create an authentic brand. It might just be the best example of building a transparent (had to throw in a buzzword) brand from the guts of its organization out to the consumer.

By the time I write my next blog in a few weeks, I bet there will be dozens of new buzzwords in the mainstream attached to revolutionary promises. Heck, I've already come across a Web site that portends to create your personal brand through aggregation (fancy term for integration) of all your social and professional sites. Sounds like another example of "integration." You can believe the hype if you want. Or, you can stick with what really works and always will: Building a brand from inside your organization out to your customers.

These are my Guts Feelings.

Kurt Bartolich, Founder/Brand Internalist, Guts Branding








These are my Guts Feelings.

kbartolich@gmail.com