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6 Insights That Could Impact Your Brand in 2017

As 2016 comes to a close, if you’re brand is still alive—congratulations you survived another challenging year. It’s safe to say that 2017 isn’t going to be any easier with persistent change at its core. But with change, or progress, our core brand values must remain firm and relevant. It’s important that we’re proactive in times of change and communicate our brand values before someone else replaces or steals our voice. This approach provides the necessary stability that people want and need. Here are six key insights to help ensure your brand succeeds in 2017:

 

Static websites, and bricks and mortar are dead

The traditional website will disappear much like brick and mortar retail outlets, unless they provide products conveniently where there customers are. The biggest advancement for the soft drink industry was the vending machine, which provided customers instant gratification of an ice cold Coke anywhere at any time. Amazon is obsessed with solving the pain between purchase and delivery with the goal of instant gratification.  3-D printing and drones will help solve some of the waiting time. Where possible, make the time between decision and gratification an exciting journey that the consumer feels in control of. This is the success of Uber.

Websites will fade into the background as solution sites, where Google will continue to grow in dominance, helping people find the best solution or hottest indulgence with total convenience. Consumers will expect greater product accuracy as personal data is shared. Your product should only appear if it fits the situation otherwise it becomes an annoyance. It is all about consumer gratification and control.

 

Secure a believable superstar spokesperson (notice I used the word believable and not credible)

The Trump-affect is real. Consumers will listen and follow celebrities before they’ll listen to a scientist or an expert. People respond to famous influences. If your brand is in crisis mode or needs to be heard consider a celebrity to get noticed. It isn’t about who is right, nor about the facts. Trust me; I didn’t think Trump had any change of becoming the next President of USA, but it shows what’s possible when a figurehead connects with an audience with a call to action.

 

 

Content is still king (including facts, truth, misinformation, lies, stolen data—it doesn’t matter)

Ensure your brand is consistently publishing your story in the digital world (news channels, blogs, social, etc.) proactively. Communicate your “why” and connect the dots so people understand your brand values.  Add value with content that makes people’s lives easier, more productive or more fulfilling. Don’t bore them with facts and figures.  Where possible, get other people to amplify your messages (this supports the previous point).

Be vigilant in listening to what others are saying about your brand. When necessary, defend your position or complement those who support your brand values. Be engaged in the conversation, even if it’s negative.

 

Your brand is as strong as your employees (attract and keep the best, and when necessary, mobilize the troops)

Attracting and recruiting talent is vital to any brand’s success—many companies fail to have a holistic approach to the entire employee lifecycle from attraction through onboarding and development. But from a communications perspective employees are the foot soldiers who can amplify the brand as ambassadors. Keep them informed and provide them with the tools to communicate the brand values to family and friends. Never underestimate this asset and build stronger ties with HR who can help in molding your army.

 

Think in hours and days (the five—10 year plan is too late)

A brand communications strategy should always be followed to ensure your narrative is told. But understand that conversation itself is fluid and your plan should allow adaptations. Think about where you might take advantage of key opportunities in 2017 or times when you’ll be on the defense. Continue to develop possible scenarios and determine various action plans. This makes the difference between an amateur athlete and an Olympian. Where possible, take the lead and play out your brand plan. But don’t forget to constantly listen to your customer and the market at large to ensure your brand hasn’t lost sight of its relevancy.

 

The printed word is losing power (audio, video and images rule)

Printed newspapers are disappearing fast are furiously as they struggle to manage their old-world structure and model. Consumers are looking for easily consumable information on the go. They want to be entertained, not just told. They want to multitask, not only read. If they can watch or listen to their solution or discover something significant within seconds, your brand will be rewarded. Understand the rules of a successful movie and your video will be Oscar material. The adage “A picture is worth a thousand words” still remains relevant.

Happy New Year!

If you assume 2017 will be more complex and turbulent than 2016, you will be prepared to take advantage of all opportunities—good and bad. Above all else, ensure your brand remains one that YOU love, and course correct from there. Good luck and may your brand be prosperous in the New Year!

 

 

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Brand Overkill – Why Less is More

Everything is a brand today. Brand experts even tell us that we must build our own personal brand. Everywhere we look we are being attacked by brands. We are lucky to get through a day without being bombarded with over 5,000 brand messages (Yankelovich study) of which only about 12 get any brain attention. There is over 4 million new brand names every year added to the brand shopping list. There is a serious problem of brand overload. Is it really important to have over 50 different shampoo brands and hundreds of specialized types to give you the perfect bouncy, curly, wavy, shiny or smooth tresses?

 

 

The biggest problem facing companies today is the world is running out of pronounceable brand names. We are making it almost impossible for consumer to keep up. The World Intellectual Property Organization report that in absolute terms, trademark demand quadrupled from just under 1 million applications per year in 1985 to 4.2 million trademark applications by 2011. In developing countries such as China, India and Brazil the rise in trademark applications is exploding. In the last four years there has been approximately 16.8 million new trademark applications.

 

Are we reaching a point of saturation where the proliferation of brands are doing more harm than good? Our memory banks just can’t keep up.

 

Barry Schwartz, PhD, a Swarthmore College psychologist and author of The Paradox of Choice: Why More is Less explains “there’s a point where all of this choice starts to be not only unproductive, but counterproductive – a source of pain, regret, worry about missed opportunities and unrealistically high expectations.”

 

 

Have we reached a state where a brand is no longer able to differentiate itself from other brands? How many deep brand relationships do we really want or can handle in our busy lives? A Gallup research study (2004) suggests that on average, Americans say they have about nine ‘close friends’ and the older you get the number maxed out to 13 close friends. Can we expect any more from a consumer concerning a meaningful relationships with brands?

 

The Beginning of Brands

 

We can blame Japan for starting some of the world’s first and oldest brands such as Kongo Gumi which was established in the year 578 and Hoshi Ryokan founded in 718 according to William O’Hara book Centuries of Success. Kongo Gumi is a construction company that built Buddhist temples, Shinto shrines and castles. But after surviving 14 centuries (1,428 years!) as a family business it closed its doors in 2006. There wasn’t a huge demand for  building temples anymore which occupied 80% of their business focus. Hoshi Ryokan is a Japanese inn located in Komatsu for over 1300 years. You can book a room today on booking.com. In a study conducted by the Bank of Korea they discovered over 3,146 companies that are over 200 years old in Japan, 837 in Germany, 222 in the Netherlands, and 196 in France.

 

Brands Come & Go

 

But brand age doesn’t guarantee brand success. Jim Collins, a co-author of Built to Last—Successful Habits of Visionary Companies, says brands must follow a set of unchanging and sustainable principles of who they are, yet constantly change in what they do and how they do it. Today, we have many examples of brands who knew who they were but didn’t have the courage to change what they did such as old favourites as Kodak, Blackberry, Blockbuster, Nokia and Hummer. Check out the article Lessons from the Brand Graveyard.

 

If you go back to the Fortune 500 in 1955, 88% of those brands no longer exist on the 2014 Fortune 500 list. Brands continually get destroyed by mergers, acquisitions, bankruptcies or break-ups. There is a healthy churn in brands coming and going. Steven Denning reported in Forbes that fifty years ago, the life expectancy of a firm in the Fortune 500 was around 75 years. Today, it’s less than 15 years and declining all the time.

 

That being said, there are about 250,000 new brands launched globally each year which keeps the world’s advertising agencies very busy. Lynn Dornblaser, an analyst at market research firm Mintel who tracks new products, says the typical failure rate of new product launches can be anywhere for 85% to 95%. That’s a lot of new business cards and advertising wasted. Schneider Associates and research partners SymphonyIRI Group and Sentient Decision Science did a consumer survey (2010) that found 45% of participants couldn’t name a single new product brand.

 

The Virgin of Everything

 

But all of these setbacks in launching a new brand hasn’t stop brand extension and introducing new products.

 

Many brands have tried to extend their brands from the classic offering to capture new markets and target groups – some successfully and others with less clarity. I call it the “Virgin of Everything.” Sir Richard Branson has taken the irreverent and fun Virgin brand and has stretched it across 350 different products from life insurance to lingerie. David Taylor blogger on Brand Gym said in his article Virgin: the worst or best of brand extension? that this was a “brand ego trip, where the brand gets too big for its boots.”

 

Then there are sub brands of brands with unique attributes, quality and value levels. For example, Coca Cola with its line of Classic Coke, Diet Coke, Caffeine Free Coke, Caffeine Free Diet Coke, etc. Nothing is simple today. Too many choices.

 

Brand Apathy

 

Everything in life is moving faster and faster. Nothing is predictable and digital technologies are changing everything except our brains. Humans still have only so much memory power and capacity to retain and process information. Bob Nease, behavioural scientist and author of the book, The Power of Fifty Bits explains that the brain can process 10 billion bits of information each second but when it comes to the “decision-making part of the brain [it] only processes a maximum of 50 bits per second.” This is a major bottleneck in the decision making process that won’t change anytime soon. Just think, we have a bandwidth issue in our brains. The proliferation of brands and branding messages means fewer chances that new brands will find a permanent place in a consumer’s mind. Steve Jobs said on his return to Apple in 1997 that “For me, marketing is about values. This is a very noisy world, and we’re not going to get a chance to get people to remember much about us. So, we have to be very clear what we want them to know about us.” Almost twenty years later Jobs’ comment is even more relevant today. A simple route to the consumer’s head and heart doesn’t exist anymore.

consumer path 2

 

We can get a new product brand to market faster and more efficient than ever before. We have more channels to get our message out than ever before. But the resulting complexities has created brand apathy. As we continue along this path of madness, brands have less of a chance to be successful. Aldo Cundari, CEO of Cundari agency, explains in his book Customer-Centric Marketing, “The new customer behavior has serious implications for all brands. If organizations don’t commit to meeting their customers’ expectations today, customers will go elsewhere tomorrow.”

What Cundari says isn’t revolutionary thinking but the warning signs are everywhere–consumers are reaching a point of brand overkill. It’s like a stadium full of brands all screaming to persuade potential customers to reach for their brand. The noise is deafening.

Havas Media Group’s annual global Meaningful Brands survey (2015) has been consistent in the last five years in saying “most people would not care if 74% of brands disappeared.”

 

Survival Tips

 

Put our branding feet into the consumer’s shoes for a day. They truly need our support.

Help them manage the daily complexities, simplify the burden of choices and reduce the cognitive load. Be where they want your brand to be and be relevant. Solve their problems even before they become problems. Take away the need for them to have to make another decision or remember another brand name.

Automate to eliminate repeating issues or tasks. Make them feel good even when your brand isn’t about feeling good. Help them navigate a simpler life. Stop yelling and start listening more.

Your brand will be rewarded for its simple solutions and not for more choices. Remember less is more and always be empathetic and relevant.

Just be human.

 

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5 Important Tips to Protect Your Brand in an Economic Storm

Daily economic news in Canada and around the world is replacing my desire for suspense novels. Every day, we are seeing new financial lows and ominous warning signs to make any brand get nervous. Household indebtedness is an important number to watch because it tells us how much disposable income consumers have to spend on our brands.

 

Canadians are leveraged through the Teeth

Statistics Canada reported that the ratio of household credit-market debt to disposable income rose to its highest level of 163.7%!  Total credit-market debt reached $1.89-trillion in the third quarter another record. Mortgage debt makes up 65% and the other 35% is consumer credit, such as credit cards, car loans, personal loans, etc.  If we assume most of this debt resides with people aged 20 to 65 years of age, the average consumer debt (not including mortgages) is $25,744. The Bank of Canada sounded the alarm that household indebtedness and imbalance on the housing sector are key vulnerabilities to the financial sector. In particular there is a segment of younger households with debt-to-income of 350% or higher!

So what does this all mean for brands? The ultimate outcome is consumers have less disposable income to spend on brands. Decrease spending on brands means decrease profits.

But looking just at the wallet isn’t the only thing we have to be concerned about. We also need to understand what consumers are thinking and feeling. Are they optimistic or pessimistic about their future and money supply? Some economists say consumer expectations concerning economic conditions tend to be a self-fulfilling prophecy. If they expect doom and gloom, the economic conditions worsen because they stop consumption. But in most cases they just follow reality.

A Storm Is a Brewin!

There are a number of possible storms that can trigger a negative change in consumer consumption such as:

  • A recession or economic downturn with loss of employment
  • Physical disaster or state of war
  • Increased interest rates
  • Increased government taxes
  • Hard to borrow money or obtain credit
  • Housing bubble burst
  • Fear and political instability

All or none of these could happen. If I knew, I wouldn’t be writing this article. I would be too busy spending my millions from my last successful financial prediction. If any of these storms appear, brands need to be prepared and take the necessary steps to respond to the market and adjust their brand strategies appropriately.

 

Consumer Mindshift in a Storm

In a time of uncertainty and fear of losing one’s job or investments, consumer purchasing habits will change and in some cases drastically. Most brands have a knee jerk reaction not dissimilar to their customers by cutting costs, including advertising, reducing prices and postponing new investments. Harvard Business Review has analysed historical market downturn data since the 1970s identifing four distinct psychological groups of consumers in hard times:

Slam-on-the-brakes

This is the group that is directly hit with financial pain and reduce all types of spending. It might be futile to go after this group if they truly are strapped for money or credit.

Pained-but-patient

This group tends to be the largest group who aren’t as pessimistic as the slam-on-the brakes but they too economize in all areas. As the bad news gets closer to home they can easily migrate to the slam-on-the-brakes group. Let’s hope it’s not the middle class. MoneySense estimates 60% of Canadians fit in the middle class (based on 2013) and have an average family income between $40K to 125K (a difference of 200% from the lower-middle to the upper-middle).

Comfortably well-off

Like the title describes, these consumers feel secure to ride out the difficult times but are more selective and careful about their purchases, it’s less about their pocket-book but more about image. This group is generally part of the top 5% income bracket.

Live-for-today

This group is less concerned about the downturn (if they are aware of it) and make little changes in their buying habits focusing more on experiences rather than stuff (except technology like smartphones, tablets, etc.). The only way this group’s consumption pattern will change is if they become unemployed. This is the group that has great parties every weekend. I want to be friends with these guys.

Remember, these are just generalizations but can help in setting your brand strategy when the economy gets difficult.

The main issue that brands need to address is price and value if they want to connect with the largest group (pained-but-patient) unless they feel they can survive with the top two groups. WPP, the world’s largest multinational advertising agencies, says in a study that brands need to face the reality of the situation and address customer needs by showing a sense of honesty and care. There are intelligent ways to acknowledge the problem and to reinforce your brands positioning and relationship. Similar to customers, brands must make difficult decisions with limited resources. But most importantly, don’t stop communicating to your customers in some way or fashion.

 

5 Tips to Manage an Economic Storm

Here are some possible tips for your brand to get customers to pull out their wallets, debit cards and credit cards during economic challenging times:

 

Create Added Value

Justify price – demonstrate superior performance and value, product comparison, and testimonials, are some examples.

Add features and services – free support & servicing, check-ups, extra quantity, extended warranties, free shipping or setup, and choice of colours, are some examples.

Economy sizes – buy more, get more – you are positioning savings, retaining sales and not sacrificing value. This is the Costco model of buying bulk.

Do it yourself – The Ikea model. The perception that you have to assemble it means you will be saving money – or just creating more pain at home – “what do you do with all the extra bolts and screws they give you or should there be extra?!”

bounty 25 thicker

The Screaming Deals

Create urgency that this is the best-time to be buying your brand. Pull out all the starbursts, yell and scream – “We have a deal for you!” Art directors will cringe at the thought of this but it does work. Everything from price discounts, promotional and special offers, contests and giveaways. Remember, all you are doing here is renting customer loyalty in the short-term but it will help keep the cash flowing.

ford employee pricing

Reduce Risk & Barriers

Show that you brand cares and understands the situation customers are facing in difficult financial times. Provide alternative payment options – nothing down, don’t pay until next year, zero percent interest payments, free financing, no-credit-check, job loss protect, etc.

hyundai offer

New Innovations and Technology

Make consumers forget about the bad times and create excitement towards a new product with never seen features or never experienced benefits. For many brands this might be difficult to accomplish in a short-time frame. But you can adjust your brand to have new efficiencies or reduce costs. Reduced costs can be accomplished many ways such as production efficiencies, cheaper ingredients, smaller package size, single servings, and slimmed-down basic version with no bells or whistles. So if you can’t wow your customer into buying your products, then reach out with an offer they can’t refuse. Chances are they will end-up buying the more expensive version but the less-expensive version got them through the door.

There have been many new products successfully launched during difficult financial times such as Rice Krispies, Plymouth and the iPod.

ipod

A Beacon in the Storm

The smart brands not only weather the storm but they continue to strengthen their brand relationships. Remember that your best customers can be your best backer during difficult times. With the help of social media they can quickly be mobilized to get your brand message out – from a simple customer referral program to getting “likes” for a new product. Always talk about the value your brand brings –the rational and psychological. Tap into the concepts of small indulgence, sharing and helping. Do random acts of kindness like Starbucks did with #TweetACoffee campaign where people were encouraged to buy a friend a coffee using twitter, or Coca-Cola’s #WishUponACoke campaign in Dubai where they fulfilled wishes for immigrant workers who left home for a job.

 

Weathering the Storm

John Hayes, American Express CMO said at the American Marketing Association’s MPlanet 2009 conference “Consumers are more likely than ever to award their hard earned dollar to those brands that provide the greatest value, build the strongest relationship and connect in the most meaningful way.”

Keep an eye on the economic weather and have a plan ready if a storm should hit. Remember as you scrutinize your customers to determine if they can pay, they too will be watching your brand on how it also handles tough times.

 

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Can You Put Your Trust In Brands?

Is brand trust in a crisis? Brand trust is earned through consistently delivering on the brand’s promise. Brand trust is the only way you can build loyal brand advocates. But the global trend is working in the opposite direction. Young & Rubicam BrandAsset Valuator reveals that consumers trust in renowned brands continues to slide. In 1997, consumers indicated that they had a high level of confidence in 52% of brands. By 2008 that percentage dropped to 22%. The Edelman Trust Barometer confirms the same trend with their annual survey. In 2015, for the first time since the end of the Great Recession of 2007-08, their survey signaled a major decline in trust with 16 of 27 countries dropping below their acceptable 50% level into the “distruster” category. For example, Canada went from a 62% trust level in 2014 to 47% in 2015. A drop of 15%! What’s going on?

 

In the climate of austerity are we starting to see brands cutting corners or blatantly deceiving consumers to protect their bottom line. Since 2007-08 the world economy hasn’t been the same and the recent financial instability in China will continue put pressure on brands to perform.

 

 

Profits vs Brand Equity

 

Professor Klaus Schwab, founder and chairman of the World Economic Forum, explains that “There are four prerequisites of the company’s survival; profitability, growth, risk protection and earning public trust.” While we may expect people sometimes to lie, like athletes, actors and most certainly politicians, we don’t expect brands to lie. Why would global companies risk their brand equity by outright lying to their customers?

 

Volkswagen VW, the world’s largest carmaker (past tense) did exactly that when they lied about their emissions tests through cheating software. Why would a mega brand risk its reputation? Profits seems to be the ultimate goal. Jointly Germany car manufactures, actively promoted to Americans that diesel was the future to meet tougher US emission standards. The only way VW was able to compete and live up to the promise was to lie. The arrogance that they thought they wouldn’t get caught is scary, especially since they publicly promised to be the ‘greenest’ car producer in the world by 2018. The lie allowed VW to claim their diesel engine were superior – selling over 12.6 million of them. The fact that buyers used to pay a $2,700 premium over gasoline engines for VW diesels meant an additional $34 billion in VW’s bank account. But the real problem was the fact that their engines emitted nitrogen oxide pollutants up to 40 times above US standards. This environmental damage can’t be fixed.

 

Alan Hilburg and Tracey Linnell say distrust is very expensive. “Low-trust brands pay a ‘trust tax’ in multiple forms, including higher transaction costs and unwanted legislation. The broader and faster the low-trust reality spreads, the deeper the effect of the higher tax.”

 

In a CNN Money report, the financial service holding company Credit Suisse estimated the cost of the VW diesel emissions scandal could exceed $86 billion. About the same GDP value as a country like Ecuador. Volkswagen is facing a very big trust-tax notwithstanding that they are trying to attract customers today through deep discounts.

 

Recently, another scandal was released by CBC Marketplace revealing that Starbucks and Tim Hortons are misleading their customers. They claim the paper cups collected in their in-store recycling bins are being recycled but are actually going into landfills. It seems these paper cups have a plastic lining that requires an additional step in the recycling process, which costs money. So why would two big brands like Starbucks and Tim Hortons mislead their customers to think that they are being environmentally responsible?

 

What’s the impact of a paper cup? CBC estimates that Canadians use over 1.5 billion disposable coffee cups in a year which is equivalent to more than half a million trees. The environmental impact is significant. I don’t know what the cost of recycling a coffee cup is but it is obviously worth more than the truth. But we will have to see if consumers make them pay.

 

Who Makes These Decisions to Lie

 

There is an apparent financial gain that can be significant over time. But who analyzes the brand risk? In an Intangible Asset Market study by Ocean Tomo, they state that in 1975 intangible assets were just 17% of the market value of the S&P 500. Today, intangible assets are 84% of the market value of the S&P 500. What are intangible assets you ask? They are intellectual property (patents, trademarks etc.), goodwill and brand equity. Most of which is built on a foundation of trust.

 

Here are four factors that may be driving some brands to disregard consumer trust as a license to operate:

 

Brand Proliferation

 

Every day we are seeing new brands entering into the marketplace. The explosion of new brands, globalization and intense competition are major problems for brands. According to a Datamonitor report, 58,375 new products were introduced worldwide in 2006, more than double the number from 2002. The reality is consumers have more choices and more choices means more competition for brands, which means more pressure on profits.

 

Moral: Brand equity is important and should be cultivated and protected.

 

Loss of Message Control

 

Brand reputation and image are now firmly in the hands of the consumer, as they control the conversation via digital channels. Nielsen’s Global Trust in Advertising Survey of more than 28,000 Internet respondents in 56 countries said that 92% of consumers around the world trust recommendations from friends and family above all other forms of advertising; an increase of 18% since 2007.

 

Moral: Brands must integrate into digital channels to communicate with customers on their terms.

 

Disconnect with Technology

 

The Edelman Trust Barometer says that the major factor in depressing trust is the rapid implementation of new technology that’s changing everyday life. Of people surveyed 54% were very cynical about new technology, stating “business growth or greed/money are the real impetuses behind innovation.” The problem with most innovations introduced to the market is little work is done to explain to the consumers why this innovation is a good thing in the first place. Genetically Modified Organisms (GMO) are a good example. GM seeds were introduced to farmers to help them increase yields but for the average consumer what did this mean? What was good about inserting a gene from one plant to another and how would consumers benefit from this. Then add, misinformed activists and their scare tactics to label these ‘Frankenfood’ and consumers start getting concerned.

 

Moral: Brands must speak down-to-earth consumer language.

Companies are Greedy

 

There is an inherent belief that faceless corporations are bad and their sole purpose is to make money anyway they can. Greed is what makes the world go round. The famous legal thriller author John Grisham emphasis this belief in all his books which have sold over 275 million copies (2002) world-wide. Every time a bad apple brand gets caught this distrust is reinforced. Janelle Barlow, co-author of Branded Customer Service explains, “Consumers have come to expect advertising and promotions to overstate, to over promise, and to frequently not deliver.”

 

Moral: Take advantage of this belief and build a caring brand (Six reasons why brands should care)

 

The Truth Won’t Get in the Way of a Good Story

 

James Heaton President & Creative Director at Tronvig Group says “It’s just too easy to lie. The attraction is too great, the professional confidence in the gullibility of the consumer is too well-established, the benefits to the company of a ‘visionary and future-oriented’ brand are too immediate and bankable to pass up for the sake of such unsexy things as brand integrity.”

 

The moral of this story is brand’s need a strong governance model to uphold the brand’s core values. This foundation ensure all business decisions are based on those values. Building strong and lasting brands takes time and resources. Lying is one of the quickest ways to ruin a beautiful brand relationship. The real shame in all of this is there are many brands built and operated by honest people that pride themselves on being authentic and truthful.

 

Kees Schilperoort, managing director at Xfacta, a brand consultancy, said it best, “In Brands We Trust, and trust is a must. Because brands that lie, die.”

 

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What does a red cup have to do with branding?

Full Stop – red cups are part of the Starbucks brand experience. As a matter of fact, over 60 million Starbucks cups are served each and every week. From the beginning of November until the end of December, Starbucks will be serving 480 million red holiday cups to help celebrate the festive season.

 

Eighteen years ago Starbucks launched their first holiday red cup – a duration that has created great expectations beyond a simple disposal coffee cup. Has this red cup replaced the advent calendar? With all the controversy so far this season you need to wonder.

 

 

Over the year’s Starbucks red cups has celebrated the holiday season with snowflakes, doves, reindeer, snowman, vintage ornaments, poinsettias, and Christmas trees, but this year they opted for a minimalist design of a two-tone red cup with no images. This brilliant long-term campaign has taken some of Coca-Cola’s best Christmas ideas and put them on a cup. Check out Time’s magazine for the evolution of the Starbucks red cup over the last seven years. This year’s red cup sans holiday icons has become blasphemy for many Christian’s organizations or an opportunity to create a controversy to garner media attention.

 

 

“In the past, we have told stories with our holiday cups designs,” said Jeffrey Fields, Starbucks’ Vice President of Design and Content. “This year we wanted to usher in the holidays with a purity of design that welcomes all of our stories.”

 

Customers See Red

 

Former Arizona Pastor Joshua Feuerstein wrote in a Facebook post “Starbucks REMOVED CHRISTMAS from their cups because they hate Jesus,” that went viral with over 14 million views in the last five days. This extreme view has stirred up the media and the social channels. Even Donald Trump has entered into the picture with the suggestion of boycotting Starbucks. Obviously he doesn’t have any Starbucks shares in his portfolio.

 

Starbucks issued a statement Sunday explaining that they are trying to create an environment that encourages “customers to tell their Christmas stories in their own way” and “to create a culture of belonging, inclusion and diversity.“

 

Jay Parini, a poet and author of Jesus: The Human Face of God said on CNN.com that Starbucks red cup is an attempt to remove even the most secular side of Christmas by “strip[ping] all texture and mythic potential from contemporary life – seems beyond absurd, perhaps even dangerous, as it points in the direction of total blankness, a life lived without depth, without meaning.”

 

Or from Starbucks point of view it’s about creating your own texture and mythic potential without being spoon feed of what you should think or believe.

 

What 480 Million Red Cups Mean

 

There are a couple learning’s we should all take from this event.

 

First, colour does matter, (check out my article on colour), red is a very strong and vibrant colour that can stimulate high emotions – just ask a raging bull. In 2011, Coca-Cola changed their sacred red Coke can to white to celebrate the holiday season and were punished by retailers and customers who became confused by the change.

 

Second, customers own your brand. Before you change any representation of your brand make sure you understand what your customers’ think. Product packaging is sacred ground for loyal customers. If Apple changed their earphones from white to red what do you think would happen? Maybe nothing or maybe all hell might break loose.

 

Third, by providing ambiguity with a blank red cup and letting the customer fill the void leaves too much room for misinterpretation or anti-brand advocated to take advantage of the situation. The brand must own the space (physically & mentally) and direct the conversation.

 

I am happy that I don’t drink coffee and have to endure this tragedy on a daily bases for the next six weeks. However, I did hear that Starbucks has started using cup sleeves with snowflakes on them. Maybe this will appease the detractors.

 

The great thing is brands continue to have the power to inspire, create conversations and be news worthy without changing anything inside their cup. And as we see here, some brand loyalists will always see the cup as half empty and others as half full. Cheers.