0

Why Great Brands Still Needs a Great Commercial

6 Ingredients to Making a Blockbuster Commercial

 

The importance of sight and sound (preferable together) can’t be underestimated in the brand building process.  Walter D. Scott, Assistant Professor of Psychology in Northwestern University who studied the psychology of advertising says “the function of our nervous system is to make us aware of the sights, sounds, feelings, tastes, etc., of the objects in our environment, and the more sensations we receive from an object the better we know it.” The more senses a brand can touch the more memorable the brand message. No wonder the video expression of the brand is king.

 

There was a day when a 30 second commercial could change a brands image overnight as long as the viewing audience was large enough to create a tipping point. Ergo the NFL Super Bowl where 114 million people are anticipating the commercials as much as who is going to win the game. But this also comes with a hefty price tag of almost $5 million per 30 seconds or $166,666 per second. At this rate you better have a message that achieves a touchdown.

 

superbowlads

 

Not dissimilar to the movie industry, there are blockbusters that captivate the world, and then there are hundreds of movies that pass through the night with no residual effect or impact. The average Hollywood movie is about 150 mins long and cost about $200 million (or $11,000 per second or $330,000 for 30 seconds) to make.

 

According to the last published report on this topic (2011 Television Production Cost Survey) the average cost of a 30-second commercial was $354,000. If you project that number into 2016 prices, it’s fair to say the average cost is around $380,000. During those precious seconds, you’ve got to tell a story that’s so memorable it burns a life-time image in the consumers mind.

 

how-the-greatest-super-bowl-ad-ever-apples-1984-almost-didnt-make-it-to-air

 

Take for example the iconic 1984 Apple’s Macintosh commercial that ran only once on the Super Bowl, it is still being talked about today 32 years later. While the media buy was for one 30 second spot it broke the barrier beyond advertising into non-paid public relations as the commercial was on every talk show and news show. Oh and, by the way, they sold $155 million worth of Macintoshes in the first three months. A touchdown indeed.

 

Evoke Emotion

 

A successful brand video (TV commercial or online) must have one important ingredient to be successful – it must be emotionally engaging. You must feel it.

 

Being edgy helps to be memorable, but it must be relevant within the times.  Humour is often used to capture the heart with the help of a likeable character. Animals and babies are generally foolproof in pulling on the heart-strings. The most memorable commercials are those that solicit the “wow” factor by combining sheer entertainment with something you never thought of or have seen before. The two strongest reactions are a hardy belly laugh or an emotional tear. Every Telus commercial tries to put a smile on your face with their zoo animals or Budweiser with their puppy love commercials.

 

Extra Gum – The Story of Sarah & Juan

 

Kmart – Ship my Pants

 

Relate To People

 

Mitch Joel, president of Mirum and author of Six Pixels of Separation says brands cannot be human but acknowledges that brands are made of people who actually care about their customers.  Likewise, people like connecting with other people (including pets, but that’s another discussion). Mitch states “[successful] brands may never be human, but they can become more humane.”

 

Brands spend millions of dollars trying to be more human-centric with better customer-service, and constructing lovable brand personalities that convey human characteristics and values. What better way to add the human touch or face to a brand than seeing the brand as a person. The premise is simple. If you like the person you will like the brand. Some brands cheat or exploit their relationship by using a famous person’s celebrity status to instantly add millions of followers, but others build a unique personality from the ground up.

 


Old Spice Man

 

Apple guy vs. Microsoft guy

 

Be In Tune

 

In a study by Jacob Jolij and Maaike Meurs, the researchers found that “mood, as induced by music, is also reflected in visual awareness, both in biasing processing sensory input, as in the generation of conscious visual percepts in absence of structured visual input. In other words, the music you are listening to might directly alter the way you perceive the world.” The soundtrack is hugely important in stirring the emotions and feelings. Think of all the great movies like Titanic, Jaws and Star Wars. You can probably hum the tunes right now. Can you still feel the intensity? What would these films be like without a soundtrack?

 

The Dirt Devil – The Exorcist

 

Be Different

 

Everyone has a story that’s unique to them – as does a brand. Uniqueness make the story worth sharing. Inspire and awe your audience. The most memorable commercials holds a place in our memories forever. They are essentially pieces of art that display the latest designs, music and culture at that moment of time. In a world where art expression is everywhere, commercials must earn consumers attention and not expect it.  Ken Segall, who worked on Apple’s “Think Different” campaign, attributes the success of this commercial on its ability to be thought-provoking and disrupt the advertising world by creating “a commercial that is totally revolutionary in the world of advertising and is seen by a huge audience.”

 

Nike – Find Your Greatness

 

Red Bull – Space Jump

 

Achieve Greatness, Responsibly

 

Any brand with tons of cash and a very creative agency can create an awesome commercial. But if it doesn’t match the product or customer experience, you are wasting money and could inadvertently damage the brand. The commercial can transform a brand image, but is must also support the core brand values and promise. Nothing is worse than setting high expectations with a great commercial to have people disappointed when they advertising promised isn’t delivered by the product. I think of Banks or Airlines who continue to over promise and under deliver.

 

the-california-raisins

The California Raisin Board created memorable TV commercials in the 1980s. They portrayed raisins as cool sunglasses-wearing Claymation characters singing and dancing to Marvin Gaye’s soul music. Using beer advertising classic technique of associating their product with music and fun. However, fun and music are generally associated with social events (where beer may be present). I’m not sure the same stories are shared around a bowl full of dried grapes…that will never be wine! In fact, raisin sales did get a small bump from the commercials but soon slumped. Maybe “the blues” would have been a better fit.

 

yo-quiero-taco-bell-chihuahua-copy1

In 1997, the Taco Bell Chihuahua was the fast-food chain’s big attempt to establish the dog as the brand mascot. While the ads were great fun and memorable, sales went into the toilet. I guess no one wanted to buy spicy ground beef from a dog. Maybe the same happen with the Subway monkey commercials.

 

10 – 600 Seconds to Shine

 

No longer are we confined to the 30 sec or 60 sec video format built by the classic TV commercial. The digital world has redefined the rules. However, most agency and brands are still stuck in the TV commercial format, primarily because television commercials still greatly influences a buying decisions. According to Deloitte‘s 10th edition State of the Media Democracy survey done in 2015, 63% of Americans stated that TV advertising still has the most impact on their buying decisions. This has dropped from 86% just four years ago. Meanwhile, millennials rely more on recommendations from their social media circle and online reviews.

 

Make a Blockbuster

 

Joseph Pine and James H. Gilmore in their book, The Experience Economy, make a compelling case that today’s customers want and expect to be “positively, emotionally and memorably impacted at every level of their commercial existence.” The fastest and the most impactful way to make this happen is video. A brand video has the power to make customers cry, laugh or change their perception forever.

 

0

From B to B or Not to B? That is the Question.

Does a human being benefit from your Business-to-Business (B2B) product or brand? To survive the future you need to be a Business-to-People (B2P) brand. While your brand might be only an ingredient or strategic component supporting another brand, eventually it will reach a human being.  But more importantly, every brand affects the world we live in so at the end of the day, you are dealing with humanity. The most dramatic change to cause this shift is the free flow of digital information (and digital misinformation). The number of stakeholders you had to worry about in building and maintaining your brand was easily managed years ago but today this isn’t no longer true.  If you start now you can build goodwill along the value chain and maybe you can be immunized against negative attacks in the future. But the biggest reward is more profits.

 

b2b-advertising

Moving Brands from B to C

 

In a B2B study done by Siegel+Gale, they state that “Most business-to-business companies still debate the ultimate business benefit of building a strong brand…” The first problem is many business-to-business (B2B) companies don’t think they need a brand as they don’t deal directly with everyday consumers. If this was true there wouldn’t be so many memorable and powerful B2B brands existing today such as Boeing, SAP, Intel, Cisco, IBM, Siemens and General Electric, to name a few.

 

The line between B2B and B2C has blurred and the boundaries are quickly disappearing. The internet has created a new consumer that wants and needs to be informed. Joel York marketing software expert describes the consumer as “more connected, more impatient, more elusive, more impulsive, and more informed than its pre-millennium ancestors.”

 

But what hasn’t changed is the risk level between a B2B and a B2C. Most business buyers follow a rigorous procurement process that is steeped in analytics, data and facts. The buying process is based on a rational decision making process based on quality, features, functionality and price. Buyers review all of the product specifications and technical details, past history and performance measurements, etc. The purchasing process is longer and may require contracts and large quantities based on a specific time period. Where does branding fit into this process?

 

In a study done by Zahra Seyed Ghorban and Dr Margaret Jekanyika Matanda at Monash University they found that most procurement managers go through a hierarchical ‘Think-feel-Do’ sequence where brand perception is the starting point. One manger explains it as “Knowing the brand and having good perceptions, good attitudes, and associating to that brand all are prior to establishing relationship. The relationship comes after.” They also discovered that emotions played an important role in the purchase decision even in highly formalized B2B procurement processes. This would explain why Boeing launched its new 787 the Dreamliner to the general public with a record order of 50 aircrafts from All Nippon Airways. Since then, 59 airlines have ordered over 1,000 Boeing 787s, making it the most successful aircraft in Boeing’s history.

 

 

Cisco System’s Advertising Director Julia Mee says “the lines have blurred so much between B2B and B2C.” To survive B2B marketers must “Think about who the customer is and what do they want to hear from us.” At the end of the day she says “Our customers are thinking about us as just a brand—they are not differentiating it as B2B or B2C.”

 

No surprise it’s all about connecting and engaging with people on many levels not just a highly emotional video with pretty pictures and a great sound track. There still needs to be substance to support the brand image. Boeing’s 787 Dreamliner is a great example. If you visit their website they have everything there to satisfy the left-brain and the right-brain, from the engineer, to the purchasers, to the pilot, to the passenger in business class, to the poor guy at the back of the plane.

 

It must have been very hard for all of the Boeing aviation engineers to sit back and abstain from adding all of the technical mumbo jumbo into the sound track.

 

Moving Brands from B to P

 

There are several marketers like Bryan Kramer, a social business strategist, and Jonathan Becher, CMO at SAP who believe that B2B marketing is no longer relevant. Kramer says marketers need to move away from the complex business vernacular full of acronyms, scientific and technical terminologies too complicated for the average person. His solution is to speak Human-to-Human (H2H) where the communication is simplistic and more emotional. Becher was instrumental in shifting SAP’s brand positioning from talking to other companies to focusing on people. “It’s not just ‘business runs SAP’; it’s also ‘life runs SAP.’ You can sum up the change as moving from B2B to P2P—people to people,” Becher said.

 

The trick is engaging people to wanting to consume your boring B2B brand messages. Volvo Trucks wanted to communicate their transport truck’s Dynamic Steering system to demonstrate the precision and directional stability. A topic everyone needs to know about – right? Well, check out the B2B video with Jean-Claude Van Damme. Over 83 million people have watched it!

 

 

The Web Video Marketing Council, together with survey partners ReelSEO and Flimp Media conducted a B2B Video Content Marketing Survey in 2015 with over 350 B2B marketers who confirmed that 73% of them believe that video positively impacts results and ROI. No surprise 96% are engaged in video content marketing. But remember human attention span is only eight seconds. You have a better chance to attract a goldfish which has an attention span of nine seconds.

 

attention-span

 

While many B2B companies realize they need to be customer-centric to compete in today’s market, few have figured out how to put this model into use. It’s important for B2B brands to understand it’s not just one video that will make the brand connection unless you’re Gangnam Style (2.5 billion views). You need many touch points to build a brand. The hardest part for most B2B brands is to focus on a promise that people care about. It isn’t easy for most large corporations, as they organically grow from one innovation to the next or acquire one business to another. How does a mega corporation align the many innovations, products and services to a common, meaningful message that people want to listen and relate to? One of the great values for B2B branding is to define the brands ultimate promise to everyone including your employees. The perfect test – if they don’t believe the promise who else will?

 

 

Doug Webster VP of Service Provider Marketing at Cisco explains “We can’t just say it provides 322 terabits per second of processing. What we need to say is that 322 terabits per second is enough for every man, woman and child in China to be on a video call at the same time.” I’m not sure I want to be on that call.

 

 

A Brands Social License to Operate

 

The need to expand beyond the traditional stakeholders (like customers, employees and shareholders) isn’t about growing the business, it’s more about ensuring the brand doesn’t face any roadblocks along the brand journey. The sphere of a business is getting more complex. Today, you need to concern yourself with a multitude of target groups.

 

As San Jin Park VP of Global Marketing Operations at Samsung Electronics said “the most prominent brands in the future will be those which build networks.” The problem today is the network is everyone. The social license isn’t controlled by the company, it’s the community-at-large that can determines a brand’s fate. A lack of trust in any brand, including a B2B brand, can result in regulatory delays, market access issues and unfavorable legislation, all of which affects the bottom-line. John Morrison author of the book The Social License: How to keep your organization legitimate says a number of factors damaging trust is transparency, accountability, clarity about benefits, and adequate due diligence. He cautions that “Consent is also an essential component. It is a mistake for any company to proceed on any activity without securing adequate social permissions.”

 

It will be the end-user and the general public who will determine your brand’s destiny based on your social license to operate. NGOs understand this. It’s no longer about science and legal requirements but about perceptions and how your brand is perceived.

 

Monsanto’s Genetically Modified Organism (GMO) seed is a great example of not gaining the general public’s social permission before launching a revolutionary technology on an ill-informed public. Had they talked more about the millions of people whose lives could be saved from starvation the brand outcome could have been significantly different. Intel made the brilliant move to tell the general public that you can’t buy a computer without the horsepower of a Pentium processor. Consumer’s bought their story and in turn only bought computers with an Intel Inside. On the other hand, Monsanto, one of the most hated companies, kept the end-user in the dark and subsequently NGOs defined what GMO was. Unfortunately, a great technology that can help feed the world is struggling because the public support just isn’t there.

 

At the End of the Day

 

If your B2B is ultimately focused on the betterment of mankind you should use every opportunity to get your brand message out and tell the world your story. Everyone wants to back a winner. Duracell understood this and tied their brand to life-saving tools that required a battery. Their very successful campaign “Trusted Everywhere” was based on the premise that devices that are important to consumers can be trusted to work when powered by Duracell batteries.

 

Every ingredient in the value chain has a brand story of why it’s important. If you can ensure your employees live the brand and you have a dialogue with the communities you live in, you have a great foundation. Getting your story out to a broader audience takes time, conviction and commitment. And in some cases its a snowball’s chance in hell!

 

 

1

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.

 

2

The Power of a Brand

How to extract value from nothing.

Years ago in my economic classes I learnt that supply and demand determined the price/value of most products especially commodities. If this is true, why is bottled water more expensive than gasoline? This is the power of branding.

 

034_BI1113_BetweenDrinks_slide

Transparency Market Research estimates that the global market for bottled water was worth about $157.3 US billion in 2013. In North America more bottled water is sold compared to milk or beer in terms of volume. Canadean research estimated that the global bottled water volumes would reach 233 billion litres in 2015. With all of Canada’s fresh water, Canada only produces less than one percent of the world’s bottled water of around 2.29 billion litres. However, US remains the fastest growing bottled water market outside Asia mainly due to customers becoming more health conscious shifting away from sugary carbonated soft drinks.

In many emerging markets, the scarcity of clean water makes bottled water a necessary staple rather than a value-added refreshment beverage like juice or soda. In North America the water in your tap is generally the same stuff you buy in the bottle. The big difference is that tap water is constantly tested to ensure they follow the drinking water quality guidelines. Bottle water doesn’t have the same stringent guidelines but does have the overall requirement of not containing “poisonous or harmful substances”. Let’s hope that the big brands follow some type of quality control.

Clean drinkable water is generally available everywhere throughout North America where the bottled water companies’ need to position their brands based on quality (healthy choice) and convenience (portable and handy). From this foundation the category gets complex with pricing strategies, water source and lifestyle attributes.

Magician duo Penn & Teller in their show Bullshit did a spoof on bottled water in a fine dining restaurant in Southern California to prove the general public can’t tell the difference between tap water and $4 a litre bottled water.

 

ABC’s Good Morning America conducted a blind tasting experiment in 2001 where they sampled branded bottle water such as Poland Spring, O-2, Evian and the popular New York City tap water. The results shouldn’t surprise you – NYC tap water beat them all.

 

If the bottled water is general the same thing as in tap water the real difference is the brand. Tap water is a commodity with no brand. It comes from any unmarked tap – hot or cold. You take the same thing, build a formidable brand image and you can extract a premium from consumers – by the litre (or ounce) at a time. Here is the secret on how to create brand value from nothing:

Power of Emotional Connection

Byron Sharp, professor of marketing science at the University of South Australia and author of How Brands Grow, says growing a brand is based on “physical and mental availability” suggesting most brand purchase decisions are made with the emotional brain so keep it simple to help trigger instinctual responses.

Ammar Mian writer at SocialRank says the emotional tipping point for bottle water occurred back in the early 1980’s when Perrier launched its ‘Earth’s First Soft Drink’ campaign. This campaign embraced the belief that their sparkling water comes from the purity of nature, straight from mother-earth. This emotional connection resonated with consumers who were becoming more health-conscious and wanted an alternative to soft drinks. Other premium bottle water brands jumped onto the branding wagon touting the image of purity, youthfulness, healthy and earthliness. Water can’t get any better than this unless you turn it into alcohol. Here’s more on Emotional Branding.

 

Power of Convenience

The brand must be easy to buy – when and where you want it – ideally everywhere. Not unlike tap water. Remember the days of drinking fountains? We though they were convenient – if we could find one. But it was like drinking from a water hose – only one quick sip if there was a line-up. Perhaps the biggest development in the bottle water industry growth has been the mass distribution systems that are dominated by the same companies that have covered the world with sugar water like Coca-Cola (who has such popular brands as Dasani and Glacéau smartwater), Nestle (who has all the water champs such as Perrier, Pure Life, S. Pellegrino, Deer Park and Poland Spring) and PepsiCo ( with Aquafina). Where is Evian in the distribution mix you ask? In 2002, Evian signed a distribution agreement with Coca-Cola Co., Inc. which ended in 2014. Then Evian found new wings with distribution partner Red Bull. And Fiji Water? Dr Pepper Snapple Group website states that they distribute Fiji Water in various territories.

Power of Fame and Attention

Getting people to pay for water where its widely available, safe and free is hard work and takes a great deal of money to build a distinctive brand. It doesn’t hurt to have a big bank account to ensure the advertising messages get noticed and the brand stays top-of-mind. Back in 2003 (based on an article in The New York Times) TNS Media Intelligence/CMR estimated Aquafina spent $24.6 million on media and Dasani spent $18.8 million on media, while Evian spent only $800,000. Ten years later, Evian is still spending around a million in measured media annually according to Kantar Media and over the years have lost market share to the more aggressive competitors, sitting in 3rd place behind Fiji Water and Smartwater. Eric O’Toole, president-GM at Danone Waters North America (parent company to Evian), contributes the brand stabilization in recent years, in part, to the launch of the Baby & Me advertising effort. Great creative never hurts if you can’t afford to advertise year-round. See more on Creativity.

 

The soft drink industry is notorious for using celebrity endorsers to help push their sugary drinks (check out a partial list of famous celebrities and soft drink brands). It’s not surprising that the bottle water brands use the same branding tool to build credibility and gain the coolness factor. Evian has used Maria Sharapova, the young and popular tennis champion, while the elite Fiji Water has uses the former James Bond star Pierce Brosnan. Glacéau smartwater has used actress Jennifer Aniston to create a buzz around their relatively new brand.

A Memorable Story

Great brands always come with a great brand story. Many bottle water brands have great stories that would put National Geographic to shame. My favorite is the Fiji story or as some say the Fiji myth. Fiji Water, natural artesian water bottled at the source in Viti Levu (Fiji islands), is a leading premium bottled water in the United States and one of the fastest-growing brands worldwide. Here is their story of the world’s finest water and it should be for the price of $3.50 – 4.00 per litre (3 times the price of gasoline). For more on Storytelling.

 

Stunning Design

Water has no distinct taste, no unique colour, no smell and all water feels wet – physical there is no difference from one glass of water to another, so packaging is king. If nothing else is going to sell you, it must be the memorable packaging, beyond the great stories and celebrities who would never drink it if it didn’t look good.

Packaging can help define a brand experience. Do you remember the first iPhone, iPad or iPod you unwrapped from its packaging? The simplistic and beautifully designed box with everything in its own place – clean and white. A perfect brand fit.

 

4c553cecf5940bb6a42c0ec059f3add4

Since 2008 Evian has been working with some of the world’s most prestigious designers to create a limited edition bottle each year. Evian has worked with such creative artists such as Diane von Furstenberg, Paul Smith, Christian Lacroix, Jean-Paul Gaultier, Elie Saab, KENZO and most recently with Alexander Wang (2016 limited edition bottle). Former zone director for the Middle East & Indian Ocean for Evian, Elias Fayad explains the limited edition concept: “Our water is untouched by man and perfected by nature, so we attempt to give the bottle an artistic expression.” In a September 9, 2015 press release from Evian, they explain each collaboration as “a renewed celebration of purity and playfulness and a reinterpretation of evian’s spirit through art and design.” I have to remind myself that we are talking about a simple natural resource that can be found anywhere on the planet (except currently in California) – simple water.

Dreams or Nightmares in a Bottle

Water is living proof that anything can be branded and can be elevated from no value to high value with sufficient investments. It is through the brand investments and the dreams the brand image creates that help achieve the value. In essence, consumers are buying dreams in a bottle. Dreams to be on a pristine tropical island or a youthful energetic baby once again. Stories of spiritual purity, blissful health and a fountain of youth – the water of life. Potentially over $200 US billion worth.

.
2e8fcfabef
But there is a dark side to this story. While dreams are created and value generated from the replenishing resource, there is a social cost. Today Wikipedia lists over 144 bottled water brands, and from the statistics, the market continues to grow. The Pacific Institute, which conducts research on water use and conservation, has estimated that bottled water is up to 2,000 times more energy-intensive than tap water. It is estimated that in 2006, U.S. bottle water consumption used the energy equivalent of 17 million barrels of oil and produced over 2.5 million tons of carbon dioxide – in one year. There’s also the worry that we are shifting water consumption from one region to another, creating an imbalance with consequences to our planet and to our future consumers.

Just because we can create formidable brands to extract more value, it doesn’t mean we should. As marketing and brand experts, it’s important we use our craft wisely. We have the ability to create formidable brands and extract value to support business growth. But if we aren’t able to balance the benefit for the consumer, society and environment, we need to consider how we’re using our power of branding.

 

0

9 Future Trends That Will Define Brands

Brands need to be ready today to address future trends. In some cases, they may be too late. This article examines trends that will force brands to change or be lost forever. Change will bring uncertainty and risk. Those brands that anticipate change will have a greater chance to succeed than those who try to wait it out. There will also be great opportunities for new innovative brands to leap-frog the dinosaurs and introduce new virtual products. But successful brands will need to keep ahead on all fronts, from product development, to delivery and servicing, with the goal of always reducing the time from start to finish. Why is Amazon so focused on the product delivery? Instant gratification is their ultimate goal.

 

As Howard Schultz, CEO of Starbucks Coffee Company said in the book The Future of Brands: 25 Visions, “One of the great things about the future is that there are no rules…you don’t have to take the road that has been travelled before.” Or better yet, as Dr. Emmett Brown in the movie Back to the Future said “where we’re going, we don’t need roads.”

 

Brands must anticipate how they fit within the future so here are nine trends to keep an eye-on:

 

1. The Digital World of Oneness

 

Smartphones have allowed consumers the power and freedom to literally have the entire world at their fingertips. Brands have to understand digital technologies that bridge the real and virtual worlds to provide smart digital services through the physical things they make. “Really strong brands are the ones which have done all my thinking for me,” says Marieke van der Werf co-founder of New Moon agency.

 

New super brands like Uber and Airbnb have brought together many individual solutions and presented them seamlessly as one big brand solution. More and more brands will either become boutique or super brands.

 

Caroline Slootweg, past Director of Digital Marketing and New Media at Unilever says “Digital has reminded us that we can, and should, play a bigger role in consumers’ lives.” Through digital technology, brands will find and help you before you realize you need help. It’s about building the algorithms, programs and sensors to create digital intelligence that can anticipate customer’s needs. But remember, digital is only the tool to help brands become more engaged with their customers. It must always be on the customers’ terms or they will quickly unsubscribe.

 

2. Global Culture, Locally Delivered

 

A brand culture starts from within the walls of where the brand is cultivated. The most successful ones in the future will be those that have the best people – from the front-line employees, to the scientists, to the marketers and everything in between. Strong brands have a strong sense of empathy between its employees and its customers.

 

While some brands will depart from the traditional retail environment to work directly with their customers, others will become more localized and play a bigger part in customer’s communities. Brands will become more sensitive to their customer’s special needs by customizing the brand experience with neighborhood-specific merchandise and tailored environments. McDonald has deviated from the standards to customize the in-store experience to match the community environment and they have also adjusted their menu according. For example, in Atlantic Canada where lobster is part of the culture, they have a lobster sandwich on the menu. The cookie-cutter brand will no longer exist in the future.

 

3. Share of Mind

 

It wasn’t too long ago that there were only a handful of communication channels. Today, we would be lucky to deal with a handful of just social channels. We are living in a very complex world of multichannels and omnichannels that seem to be changing quickly. David Sealey, a blogger on Smart Insights and head of digital consulting at CACI, estimates there are over 120 different channels (you can check out his channel list). Today, if you want to reach teens you need to be on Snapchat (not yet on Sealey’s list), not Facebook. In less than four years Snapchat has amassed a global following that sends over 700 million photos and videos per day. The landscape of media channels isn’t just growing with new channels but it’s also changing rapidly. You will need an entry and exit strategy as channels attract or repel specific target audiences.

 

 

The goal isn’t being on every possible channel but being where you need to be to build your brand’s share of mind. The most sustainable solution is to grow a pair of wings and build your own channel, like Red Bull.

 

4. Data Connectivity

 

Having data doesn’t seem to be the problem. Brands have access to all types of data including social, loyalty, transactional, CRM, demographic, weather, satellite, product, and other sources. The trick is deriving a conclusion that can create actions to enhance success; otherwise it’s just all head hurting. The wining brands will be those that successfully convert and mine the data to build stronger customer relationships.

 

New technologies, neuromarketing and continuous connectivity will allow brands to seriously provide personalization that has yet to be seen. The future will develop better analytical tools and mix unrelated data to make new predictions and products. Human behaviour is 90% driven by emotions and motivations that operate below our consciousness; but what if we were able to start collecting data at this level through neuromarketing techniques such as biometrics, facial decoding, and eye-tracking. All technologies currently available.

 

5. Boomers – Cashing Out

 

We will continue to see a consumer marketing shift towards the developing nations over the next decade, but more profoundly is a massive global population that is quickly aging. The United Nations projects that the total population of people older than 65 will double to 1 billion over the next 20 years. Accenture Life Sciences forecasts that the consumer healthcare market, valued at $502 billion in 2013, will rise to $737 billion within five years.
So how can brands meet the needs of this demanding consumer-base? For many years the boomers had total control over marketing to themselves. We will see a proliferation of consumer products that will cater to their needs and wants from health-care products and services, entertainment, travel, food and housing. They will be totally obsessed with their personnel health and fitness. They will be focusing on their grandchildren and assessing their legacy as they look at their footprint on the world. Will they all become environmentalists?

 

There will be a great financial burden placed on the rest of society to support them with government services as they become dependent on medical and social support. Robotic technologies will be a growing industry in helping solve some of the healthcare and assistance issues. It will be important for brands to understand their role and how they continue to communicate to this target group – a group who will become disengaged and more isolated from the fast and changing world that they no longer control.

 6. Millennials – In the Cash

 

There has been more written about this generation than any other generation before them. But the fact is they will eventually be running the world. Like every generation, they will come with a different set of values. So far their entire life has been dependent on technology and connectivity 24/7. Every minute of their lives has been capture digitally via video, photo, audio and text. Transparency and constant engagement is their life. Brands need to find means to fulfill this desire in a genuine and authentic way. The need for good content will continue to be in great demand. Brands will need to find ways to collaborate and co-create content with customers and other brands to fill the ever-growing content pipeline.

 

 

7. Technology – On Steroids

 

Technology is getting smarter and smaller. Cash registers will be replaced with cloud-based point of sale systems if retail still exists. Brand transactions will happen everywhere and nowhere. Malls will be converted to entertainment centres for customers to test-run new technologies and physically and virtually interact with their favourite brands. Augmented reality will allow customer to try out products in a controlled-brand experience environment. 3-D printing will allow some brands to bypass the retail and production system and distribution model or provide customized solutions on-site. Brands will be alive with digital messaging that will communicate with other internet of things electronics including wearables, vehicles and homes. Personalization will be capable throughout the brand life-cycle with the consumer. Brands will communicate with other brands to provide seamless and enhanced experiences. Brands will never sleep. Every brand will be equipped within or attached with a smart device to ensure maximized brand functionality and always learning from the specific customer experience to continue to increase performance.

 

8. Traditional Advertising Gone

It’s not a question of ‘if’ but when will traditional media end. Old-style, one-size-fits-all, mass advertising will be dead. Not only will the classic media channels disappear (print, radio and TV – as we know it today) but the advertising formats of a 30 second commercial or print ad will be gone forever; replaced instead, by dynamic, insightful, personalized digital communications that will build and support a customer’s brand relationship. Brands will live within the content and are currently creating it, like Netflix. Word-of-mouth will continue to be replaced by word-of-digital via social, online reviews and customer created brand content.

 

9. Population Growth

 

The United Nations predicts the world population will reach 9 billion around 2050 that is an increase of around 2 billion more consumers. The majority of these new consumers will be in less developed regions, except for the USA which is expected to increase by 31% to 400 million people. These new consumers will put enormous pressures on all the worlds’ global consumption of food, water, natural resources and non-reusable energy sources. A side effect will be human-generated greenhouse gases. Brands will need to provide ‘greener’ solutions to help save the world. Brands will be required to take the high-road on sustainability and resist the quick buck approach. In 2010 Unilever introduced their Sustainable Living Plan to decouple the company’s growth from its environmental footprint. Along with the parent company, their thousand-plus brands also include a social purpose to their brand positioning. That’s thinking Uni-versal.

 

The Future is Now

 

If you think you are late, you are. But the second best time to plant a tree is today. If you think you are ahead of the game, make sure you are in the right game. The brands that survive will assimilate closer to our lives in ways we don’t yet understand. Technology will elevate, destroy and create new brands. But remember, it will still be people who will control, develop and invest in brands. And it will be people who still experience brands. So far, people don’t change too quickly – just every generation or so. As Keith Weed, Chief Marketing and Communications Officer of Unilever says “It used to be that big eats small. But now it’s a world where fast eats slow. What’s important is that we get to the future first.”

 

But as Doc. Brown said in Back to the Future, “Your future hasn’t been written yet. No one’s has. So make the best of it.”