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The Value of an External Brand Energizer

Partnerships should enhance brand personality, like Home Depot and Habitat for Humanity or Valvoline and NASCAR.

Almost all brands need energy in order to gain visibility and support key associations. And one way to gain energy is with an ownable, internal branded energizer.

However, creating and owning an internal branded energizer that resonates with the target segments and energizes and enhances the target brand is difficult and expensive. It can take years to get traction at a time where action is needed in months. Indeed, it may not be feasible at all in a marketplace in which competitors have strong brands and active energizers of their own.

Enter the External Branded Energizer

An alternative is the “external branded energizer, a brand that is owned by another organization. In essence, you find a brand already established with energy and attach the target brand to it. By energy, I mean some combination of exciting/interesting, involving/engaging, innovative/dynamic and/or purpose-driven/passionate.

There is an infinite supply of brands outside your organization that have the potential to energize and enhance that also have enormous strength, are not tied to competitors, and can be linked to the target brand. With discipline and creativity, candidates can be located. The challenge is to create and manage the resulting co-brand alliance.

An external branded energizer will have a variety of sources, but among the most important are sponsorships and endorsements.

Using Sponsorships to Energize Brands

The right sponsorship, handled well, can energize and even transform a brand, adding a meaningful higher purpose. Home Depot, for example, sponsors Habitat for Humanity. Home Depot supplies volunteers, some of the material needed to build and support in raising money and awareness. It is easy for a Home Depot shopper to know of the connection because of the signage, the programs and the continuity over time. FedEx has received energy by sponsoring the FedEx cup, the world series of professional golf. It culminates in four tournaments, the last of which contains 30 top golfers vying for a 10 million dollar top prize. The venerable motor oil brand Valvoline gains involvement and a visible shared interest through its NASCAR sponsorship, supported by a creative website.

“The challenge is to create and manage the resulting co-brand alliance.”

Prestige events like the Olympics can add energy and give a leadership halo to a want-to-be leader brand. Samsung broke through from being just another Korean technology brand to becoming a real player in the US market as a result of its sponsorship of the Olympics. Prestige events can also add energy to established brands, such as VISA. Brands such as these that are successful at creating links with the sponsorship surround the sponsorship with a host of brand-driven activities including promotions, publicity events, website content, newsletters and advertising over an extended time period, usually measured in decades.

Using Endorsers to Energize Brands

Another route is using an endorser, a personality that is contemporary, visible, on-brand, energetic, authentic and in the news. Think of what LeBron James brings to not only Nike but Coca-Cola, State Farm, and McDonald’s. And Roger Federer to Gillette, Mercedes, Rolex, Credit Swiss, and Wilson. An endorser can also be a symbol, such as the Peanuts characters adapted by Metlife in 1985 or the Pink Panther used by Owens Corning, the insulation company even earlier. These symbols can provide energy and visibility to a brand stuck in a boring product class.

Guidelines for Sponsorships and Endorsements as Brand Energizers

  • Make sure that the external branded energizer does in fact deliver energy, and that the energy remains a primary objective during the management of the brand alliance. Be also sure that the branded energizer fits its role.
  • Understand and manage the role of the branded energizer. How exactly is it going to be used to deliver on its objective?
  • The brand alliance relationship should be entered into and managed as a long-term marriage, not as a fling. It is a marriage. There needs to be a two-way reason to partner that will endure the future strategies and people changes. There should be compelling fit.
  • Find ways to associate the target brand with the energizer (it is not important to do the reverse —associate the energizer with the target brand). The key is the long term relationship and a set of surrounding programs so that the link goes beyond simply repetition.
  • Consider the external branded energizer as part of the brand portfolio, and manage its links to the other brands in the portfolio. Again, it is not another sponsorship or promotion, it is a brand that is a member of the firm’s brand portfolio.

For more, see my book Brand Portfolio Strategy


FINAL THOUGHTS

Even leading brands can appear tired, especially when newer entrants generate more attention. Brand managers can’t let that happen, and need to commit to new ways to add interest, including events, sponsorships and celebrity endorsers.

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Create an Ownable Branded Energizer

Events not only build buzz. They underscore key attributes of your brand.

Most brands need more energy in order to provide the visibility needed to be considered and to support perceptions and attitudes. But how do you energize a brand, especially when the brand has no newsworthy innovations on hand or there is little interest in the brand or product category? It can be a tough assignment.

The solution might be to create an ownable, internal branded energizer which is not part of the offering per se but has energy and then to use that “branded energizer” to energize the target brand or sub-brand.

“A brand makes it so much easier to achieve the energizing objectives.”

An ownable branded energizer is a branded product, promotion, sponsorship, symbol, program or other entity that by association significantly enhances and energizes the target brand and is developed and owned by the organization.

Examples of Brand Energizers

The Avon Walk for breast cancer provides energy to the cosmetics firm that could not be obtained through the offering. The Oscar Meyer Weinermobile, the hot dog-shaped vehicle that travels the country and supports the Oscar Meyer jingle context. The Adidas Streetball Challenge is a branded weekend event centered around local three-person basketball tournaments and featuring free-throw competitions, street dance, graffiti events, and extreme sports demonstrations all accompanied by live music from bands from the hip hop and rap scenes. Symbols like the AFLAC duck, Betty Crocker and the Michelin man provide enormous visibility while highlighting relevant attributes. Virgin’s founder and CEO, Richard Branson with his outlandish stunts (some involving hot-air balloons) have become a large part of the energy and personality of the Virgin brand.

An effective homegrown brand energizer should:

  • Have energy and vitality. That means it should be described as exciting/interesting, involving/engaging, innovative/dynamic, and/or purpose-driven/passionate. In most cases, the branded energizers will benefit the brand and the business in several ways including generating short-term sales. But the energy should be one of the primary goals and the brand and its entity should be managed accordingly.
  • Be connected to the master brand. One route is to use a sub-brand such as Ronald McDonald’s House, which means that the target brand has a connection in the name. A second route is to select a program or activity that is so on brand that it makes the link easier to establish. A baby-care program, like that of the Pamper’s Village would require little effort to connect to Pampers because of its close connection with babies. A third is to simply forge the link by consistently building it over time with significant link building resources.
  • Be regarded as a long-term asset and be managed accordingly. We are not talking about a seasonal promotion, energizing though it might be. It should be a program, product, symbol or other entity that merits a long-term investment and ongoing active management. It should have an active life of its own and not just be something on the shelf. Consider the Avon Walk, the Oscar Meyer Weinermoble, the AFLAC duck, and Branson’s activities. These energizers all have had decades of life and themselves been continuously refreshed.

FINAL THOUGHTS

Most of these energizing programs could be accomplished without brands, but a brand makes it so much easier to achieve the energizing objectives and to own it. A brand serves to make it easier for the firm to communicate what might be a complex concept and link that concept to the parent brand. It also makes it easier for the customer to remember the thrust of the energizer.

But having a brand will not make an effective brand energizer. Rather, a worthwhile energizer that involves the investment of resources will be more effective and capable of being leveraged if it is branded.

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Your Brand Needs Energy!

To stand out from the crowd, brands need to have life. Find new ways to make them interesting, engaging and dynamic.

Unless your brand is one of the exceptions, it needs energy!

A brand that has insufficient energy has two potential liabilities. First, it will lack visibility and it will no longer be amongst those that come to mind when considering a purchase. It will be lost in the noise of the environment and no longer be relevant. Second, and perhaps worse, it will see declines in key image items such as perceived quality and trust and, in addition, have its ability to drive differentiation and loyalty degraded. There is disturbing evidence to back up these assertions.

The Y&R Brand Asset Valuator (BAV) database includes more than 38,000 brands measured on over 75 metrics for over more than 40 countries, from 1993 to the present. The Brand Bubble by John Gerzema and Ed Lebar reports findings from the BAV database that show brand equities (measured by trustworthiness, esteem, perceived quality and awareness) have been falling sharply over the years. For example, over the span of 12 years, trustworthiness dropped nearly 50 percent, esteem fell by 12 percent, brand quality perceptions fell by 24 percent, and remarkably, even awareness fell by 24 percent. This fall continued, even accelerated, after the financial shock of 2008.

Brands with energy have proved the exception to 2008 decline.

They have, in general, not only resisted an image decline but have retained their ability to drive financial performance. A BAV modeling effort by Bob Jacobson of Washington and Natalie Mizik of Columbia shows that for high-energy brands, increases in energy and attitude drive stock return (based on an analysis of those brands like GE or IBM that represent a significant part of the sales of a firm). In fact, the BAV team has redefined differentiation, now calling it “energized differentiation,” because, without energy differentiation, the impact is compromised.

So what is brand energy?

  • Interesting/exciting: There is a reason to talk about the brand. (Disney, AXE, Avon Walk for Breast Cancer, Pixar, FedEx Cup)
  • Involving/engaging: People are engaged; the brand can be part of a valued activity or lifestyle. (Lego, Disney. Starbucks, Google, Amazon)
  • Innovative/dynamic: The brand is like to be continually innovative or capable of creating “must have” innovations that create new subcategories. (Apple, Virgin, Dove, GE, 3M).
  • Passionate/purpose-driven: There is a higher purpose that propels passion. (Whole Foods Market, Patagonia, Muji, Nike).

One way to energize the brand is to energize the business, and the best way is through offering innovation. Apple, Dove, Virgin, 3M, Subway, and many other brands have a continuous flow of innovations that create interest and visibility. However, that route is not always open. In many cases, successful innovation is elusive even with motivated efforts, talented people, creative processes and healthy budgets. And innovations that really make a difference, that rise above those that simply maintain a market position, are even rarer. Further, some businesses compete in product categories that are either mature or boring — or both. Whether you make hot dogs or market insurance, it is hard to conceive new offerings that are going to energize the marketplace. So the need then is to look beyond the offering for ways to make the brand interesting, involving, dynamic, enthusiastic, and a topic of conversation.

“Innovations that really make a difference, that rise above those that simply maintain a market position, are even rarer.”

Some suggestions to energize your brand:

  • Create an involving promotion. Coke Zero, for example, asked basketball fans to upload their most fanatical videos and photos supporting their favorite teams, and winners were shown in a special show before the championship game.
  • Create a promotion to attract new customers. Denny’s gave away more than two million Grand Slam Breakfasts in one day with the help of a Super Bowl commercial and online buzz. Free breakfasts broke through.
  • Attach a social network to the brand. The General Mills “Live Gluten Freely” site provides a social network for those interested in gluten free eating. On the Harley-Davidson website, bikers can post pictures of their most recent ride.
  • Go retail. The Apple store is a good part of the success of its products and brand because it presents Apple in a way that is completely on-brand. Nike and Sony have statement stores that serve to present the brand and offering story in a compelling and integrative way.
  • Bring the brand to the customer. TaylorMade golf equipment representatives travel to golf clubs to demonstrate and sell equipment, giving customers a more vivid and on-brand way to experience them than they would get in a sporting goods store. Target created the 30-day Bullseye Bazaar in Chicago to introduce the Tracy Feith Clothing collection, the private-label food line from Archer Farms, and Target furniture.
  • Hold publicity events. Consider the balloon adventures of Virgin’s Richard Branson, the BMW short films created by top directors, or the incredible Red Bull sponsorship of a person jumping out of a balloon 24 miles above the New Mexico desert.
  • Support the higher order purpose. Whole Foods Market provides information and support to those interested in organic and natural foods.

FINAL THOUGHTS

There is another option. Find something with energy, a branded energizer, and attach your brand to that. We save that to a future blog post.

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10 Steps to Build a Successful Brand Portfolio Strategy

The goal is to have as few brands as possible, infusing them all with a lot more energy.

Creating an effective brand portfolio strategy is one of the most difficult and critical challenges facing today’s executives. Too often, the family of brands generates customer confusion, inefficiencies, mixed opportunities, and misallocation of resources rather than supporting each other and the brand’s underlying strategy.

10 Steps for a Successful Brand Portfolio Strategy

Gathered from my book, Brand Portfolio Strategy, here are 10 guidelines that point toward the creation of a cohesive, effective, well-defined brand portfolio strategy.

1. Make sure that each brand has a well-defined role or set of roles to play in each product-market context that it is expected to contribute.

It is important to make sure that each brand has a well-defined role or set of roles to play in each product-market context that it is expected to contribute. Each brand needs to be actively managed in order to be successful within that role. In particular, brand-building resources should be allocated on the basis of these roles and not based on the sales and profits they are currently generating. For example, future master brands, emerging brand platforms, endorser brands, and lynchpin brands (brands like GM’s “On-Star” that provide differentiation to other brands), for example, should receive adequate funding so that they can fulfill their role.

2. Identify the strategic brands that will play a driver role in supporting major businesses or product platforms in the future.

As a brand strategist, you should identify the strategic brands that will play a driver role in supporting major businesses or product platforms in the future. A brand is said to have “a driver role” when it drives the purchase decision and defines the user experience. A brand with a driver role will represent the offering and summarize its value proposition and lead the charge against competitors into the product market. A strategic brand is the present or future star player, a brand that the future success of the business will hinge on.

3. Understand the roles of sub-brands and endorsed brands when deciding how to brand a new offering.

When deciding how to brand a new offering, you will need to understand the role of sub-brands and endorsed brands. A sub-brand will allow some distance from a master brand, an endorsed brand more, and a new brand the most. How much distance is needed? Three questions are involved in branding new offerings and deciding whether a new brand is needed. Will existing brands enhance the new offering? Will the new offering enhance an existing brand? Is there a compelling reason to generate a new brand?

4. Brand portfolio strategy is intimately connected to the business strategy, which specifies the product-market growth directions and the associated value propositions.

Your brand portfolio strategy is intimately connected to the business strategy, which specifies the product-market growth directions and the associated value propositions. So, you need to articulate the business strategy. A brand needs to be in place to support those growth directions. In particular, brands are needed to provide visibility and credibility to new offerings in priority product markets.

5. Find or create branded differentiators.

Actively managed branded features, ingredients, technologies, services or programs create a meaningful impactful point of differentiation for a branded offering over an extended time period. The Heavenly Bed, for example, is a branded differentiator for Westin Hotels.

6. Almost all brands could use more energy.

Some brands, especially established brands, may be noticeably bland and tired. A solution is to create or exploit branded energizers, a branded product, promotion, sponsorship, symbol, program, or other entity that by association significantly enhances and energizes a target brand. The branded energizer can be controlled by the firm (e.g., the Walk for Breast Cancer) or by another firm (Home Depot’s connection to Habitat for Humanity).

“It is important to make sure that each brand has a well-defined role or set of roles to play in each product-market context that it is expected to contribute.”

7. Leverage strong brands through brand extensions.

Extension opportunities that will fit and add value to a brand through its associations and customer base should be sought out. The extension should also enhance the brand by providing visibility, associations, energy, access to growth arenas, and communication efficiencies. Rather than conducting ad hoc brand extensions, it’s strategically better to develop brand platforms with a vision for the ultimate future of the brand.

8. Vertical extensions are risky, but sometimes necessary when creating a new brand is simply not feasible.

Vertical extensions are risky, but sometimes necessary when creating a new brand is simply not feasible. However, when moving into a value market sometimes a sub-brand or endorsed brand strategy will reduce the risks of extending a brand. The same is true when it is necessary to enter a super-premium market. In any case, implementation needs to address delicate issues.

9. A corporate brand can be a powerful master brand or endorser because it is uniquely suited to capture the organization’s heritage, assets and skills, people, values, citizenship and performance.

A corporate brand can be a powerful master brand or endorser because it is uniquely suited to capture the organization’s heritage, assets and skills, people, values, citizenship and performance. While competitive products may be similar, organizations rarely are. A corporate brand is thus a potential source of differentiation as long as it stands for something meaningful and positive.

10. Reduce the size of the portfolio when possible.

Resist adding brands that are not needed. Eliminate brands that have no role and relegate a brand to descriptor status if it is not getting traction or failing to play a driver role.


FINAL THOUGHTS

A brand portfolio strategy is about a family of brands, their roles and their relationship with each other. It should deliver synergy, leverage, clarity, relevance, differentiation and energy. To achieve this goal, an ongoing effort to review and refine is usually needed.

Is your brand strategy built for success? Learn how Prophet can help.

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What’s a Business Strategy?

The right strategies define where and how companies should compete.

A key ingredient to success is to have a clear, realizable, impactful business strategy. But what is a business strategy?

I developed my view for part of my book, Strategic Market Management (updated edition coming soon), and I deduced that four dimensions define it. The first concerns where you should compete, and the remaining three concern how you should compete.

The first dimension concerns the product-market investment strategy, the scope of the business and the dynamics and resource priorities within that scope. Which products should be offered, and which segments should be targeted? Which should get aggressive investment to enter or grow, which should get minimal investment, and which should be milked, exited or avoided? Where should growth come from? Options include bringing existing products to new markets (market expansion), bringing new products to existing markets (product expansion), or entering new product markets (diversification).

The second dimension concerns the customer value proposition, which needs to be relevant and meaningful to the customer, reflected in the positioning of the product or service, sustainable over time and differentiated from competitors. It can involve elements such as providing good value (Wal-Mart), excellence on an attribute such as getting clothes clean (Tide), quality (Lexus), product line breadth (Amazon), innovative offerings (3M), a personality that connects (Harley-Davidson), organizational values (saleforce.com), or shared interest (Pampers and baby care).

“A strategic competency is what a business unit does exceptionally well.”

The third dimension concerns strategic assets or competencies that provide a sustainable competitive advantage. A strategic competency is what a business unit does exceptionally well—such as a customer relationship program, manufacturing or promotion—that has strategic importance to that business. It is usually based on knowledge or a process. A strategic asset is a resource, such as a brand name or installed customer base that is strong relative to competitors. Strategy formulation must consider the cost and feasibility of generating or maintaining assets or competencies.

The fourth dimension concerns a supportive set of functional strategies or programs and the executional elements needed to deliver on the value proposition. Creative excellence in conceptualizing and implementing these strategies will be critical to success. They could be around offering development, new product introduction, customer relationships, brand building, communication, social technology, distribution, coordinating global markets, quality, logistics and more.


FINAL THOUGHTS

The concept of a business strategy is central to most businesses, but, strangely, there is no accepted definition. As a result, the process and its output can be all over the map.

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How Burger King Is Attacking Their Relevance Problem

For brands that have fallen out of favor, one solution isn’t enough. This four-step plan is paying off.

For over a decade, Burger King has experienced mismanagement of relevance challenges by a series of “new” owners. Menus were not suitable for large, important segments such as women, families and the health-conscious. At one point it was all about the young male and their burgers, but even this group was attracted to new fries/burgers/shakes concepts with attractive personalities and/or local connections. The experience was inconsistent and at times disappointing. The advertising and the “King” symbol were ineffective and even strange even to the young male. For many in the broad market that needed to be served, Burger King was simply irrelevant.

“For many in the broad market that needed to be served, Burger King was simply irrelevant.”

As recounted by Jordan Melnick in QSR CEO Steve Wilborg, who was hired in 2010, may have finally gotten it right. In April of 2012, Burger King announced a four-prong initiative to make the brand relevant to more than the young male burger crowd. In particular, they…

  1. Expanded their menu to include “Garden Fresh” salads, mango smoothies, chicken wraps, crispy chicken strips and mocha frappes among other new offerings, thereby broadening the potential customer base.
  2. Improved the consistency of the experience by turning the franchisees into partners rather than the adversaries they had become. In particular, Burger King set up a restaurant council, a marketing council and a people council consisting of franchisee and company representatives.
  3. Developed a new marketing program under the tag “Exciting things are happening at Burger King” that included a set of “A-list” celebrities to help communicate the new Burger King with humor that resonated with the broader target market.
  4. Allocated funds to location renovation with a new look and feel that included digital menu-boards, new uniforms and fresh packaging.

FINAL THOUGHTS

The effort to dig itself out of a relevance hole looks promising. It addresses the major relevance issues —understanding who is the target segment and their changing tastes, making sure the offering is what they are looking to buy, communicating in a way that fosters relationships, and adding energy through innovation. Other established brands that face similar relevance challenges could learn from Burger King’s efforts.

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The Strategies of Emerging Market Competitors

A new book details 39 global companies are letting innovations–not advertising–drive their branding efforts.

When I was in China several years ago, I felt that the firms there would eventually become leading global players. It’s happening now, and a new book, The New Emerging Marketing Multinationals by Amitava Chattopadhyay and Rajeev Batra (with Aysegul Ozsomer) explains how. The authors report a study of some 39 firms that have made a move toward global prominence.

There are four strategies that have been employed by Emerging Multinational Corporations (EMNC):

  1.  Acting as a cost leader by leveraging local low-cost human resources to provide low-end products, often starting with private-label brands that gain volume sales in their home market and in other assessable markets as well.
  2. The knowledge leverage-er who draws upon specialized knowledge of customer needs when the conditions are privative and the income is low. The answer is often simple, rugged and inexpensive products that can often find a market elsewhere, eventually. Because TMNCs (triad multinational corporations—firms from Japan, the US or Europe) cannot be prevented from accessing low-cost resources or learning about their markets, it is not clear how sustainable these strategies can be.
  3. The niche customizers, such as India’s Godrej that focuses on hair color, soap and household insecticides and targets South Asia and Africa. They take advantage of their cost structure and operations to adapt and customize for small segments that the TMNCs, who instinctively standardize as much as possible, have difficulty reaching. The strategy is to out-localize the TMNCs.
  4. The global brand builder with focused innovation to enhance the cost advantage and to develop customer improvements. The key is to have a narrow innovation menu. HTC, for example, focused on smart phones and is now the third leading player. The innovation can also be directed to enhancing the customer experience. Lenovo has a brand essence of “innovation that makes a difference to customers.” Innovations like its ultra-thin, ultra-small, wide screen Thinkpad notebook and its laptop that boot up 20 seconds faster are examples. The innovation is significant enough to break out of the clutter and be noticed by the customers and the trade.

I am particularly intrigued by the last two strategies and the fourth specifically. My belief, as described by my book, Brand Relevance, is that the path to growth is to create customer “must-haves” that render competitors irrelevant. That is what at least some of the new emerging marketing multinationals are doing in part supported by their low-cost R&D.

“The path to growth is to create customer “must-haves” that render competitors irrelevant.

A key to their efforts is brand building. They recognize that a brand is necessary in order to be a global player in not only the premium segment but also the middle market. But the interesting finding is that innovation rather than advertising is taking the lead in brand building. Thus, firms like LG, with front loading washing machines, and Brazil’s Natura, with its biodiverse ingredient-based cosmetics, have been able to create high-end brands.

This is the future, and this study provides an early view of what the winning competitors are doing and will continue to do.


FINAL THOUGHTS

If they chose to, U.S. companies could learn a great deal more than they think from emerging multinational corporations. Companies in India, Brazil, China and more are cranking out innovations and concepts. And with their lower R&D costs and attention to brand-building, they are already major players.

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The Power of the Shadow Endorser

This approach lends credibility to one brand, while protecting another, like BMW and Mini Cooper.

There is often a business case to stretch a brand into an area that it just does not fit, even when shielded by a subbrand or as an endorser. The answer can be a shadow endorser.

BMW is a shadow endorser of the MINI Cooper. A shadow endorser brand is not connected visibly to the endorsed brand, but most consumers or potential customers know about the link or can be informed about it prior to purchase. It’s in the shadows. The fact that the brands are not visibly linked makes a statement about each brand. It communicates that the organization realizes that the shadow-endorsed brand represents a totally different product and market segment than other offerings connected to the endorser.

A shadow endorser can protect the endorser brand while still providing the reassurance that an endorsement provides. Every buyer of a MINI Cooper knows that it is made by BMW and will have the same quality and innovation standards, even though it’s a cut below the BMW line. But the BMW owner does not connect the two, and thus the emotional and self-expressive benefits connected to the BMW are not in jeopardy.

“The fact that the brands are not visibly linked makes a statement about each brand.”

A shadow endorser strategy can also protect the new offer. Consider Lexus. Most buyers, especially in the early days, knew and were reassured that Toyota makes Lexus because of Toyota’s financial strength and reputation. However, Lexus delivers self-expressive benefits that would be diminished by a visible connection with Toyota. But the connection with Toyota is recessed in memory and accessed only when relevant, not in day-to-day experiences as a buyer or user of the Lexus. With no visible link to Toyota, there is no memory cue about the endorser. You buy and drive a Lexus, period.

A shadow endorser strategy allows complete freedom for the offering brand to be whatever it wants to be. Lettuce Entertain You, a Chicago-based restaurant group with dozens of restaurant concepts such as Savanello’s (Italian), Everest (very upscale French), and Mon Ami Gabi (French Bistro) was a shadow endorser for some 25 years after opening their first concept restaurant in 1971. Each restaurant had its own image, personality, style and brand name. The absence of a visible endorsement from Lettuce Entertain You meant that there was no chain connotation, and patrons needed to discover the shadow endorsement themselves through word-of-mouth and PR. Discovering the endorsement and having some intriguing “insider knowledge” only increased its impact.

A shadow endorser can evolve as brand equities change. In particular, it can play a role in providing functional service. In the late 1990s, Lettuce Entertain You became a stronger brand and developed a frequent diner program and even cross-promoted their restaurants to a limited extent. Starwood, long a shadow endorser of its hotels, which include stand-alone brands like Westin, Sheraton, “W” and others, used the Starwood brand as a reservation service and loyalty program. However, Starwood as a provider of auxiliary service in no way inhibited their portfolio brands.

A shadow endorser can also play a key role in B2B marketing. Dockers and Mountain Dew both get more respect from retailers because of their association with Levi-Strauss and Pepsi. The shadow endorsement of Touchstone by Disney helps attract high-potential scripts. The shadow endorsement by Viacom of its properties such as CBS Television, Simon & Schuster, Paramount Pictures and Nickelodeon affects investors and advertisers.


FINAL THOUGHTS

New offerings can face a huge barrier in establishing a new brand when the use of existing portfolio brands, even as an endorser, represents a risk. The solution could be a shadow endorser that can provide an extra measure of separation between the offering brand and the endorser while providing many advantages.

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Three Keys to Managing Your Personal Brand

Your personal brand deserves attention, too. And knowing how others perceive you can spark growth.

Every person has a brand, represented by a name and face that has a host of associated characteristics, such as: professional skills and assets, career paths, communication styles, appearance, personalities, interests, activities, friends, family and more. The brand influences all relationships by affecting how a person is perceived and whether he or she is liked and respected.

The “personal brand” can be actively managed with disciple and consistency over time, or it can be allowed to drift. There is a huge payoff to employing the active management option, and there are large risks to the alternative.

There are three keys to getting your brand under your control.

Your brand needs to have a strategic vision that details what you want it to stand for. It should be aspirational but realistic in terms of what can be added, changed or made credible. Just the decision to manage your brand and develop a brand vision can be transformational. Several questions need to be addressed:

  • What is the current image? What do people think of you in terms of personality, skill, activity, possession and people you associate with? What are their expectations of you in terms of talent and motivations?
  • What are your assets, such as your education, personality elements and people skills? What are you good at? What are you interested in improving?
  • What are your plans for programs to upgrade or change? Any plans to build new skills, add new activities or dial up of existing ones?
  • What image would you like to portray? How is it different from your existing one? How aspirational is it? Is it simply emphasizing some aspect of your brand that already has credibility, or does it represent changing the person and ultimately the image?

It should be recognized that the latter is more difficult. Several alternative brand dimensions should be on the table. Usually, there are alternative ways to group and prioritize them. The end goal is to develop an aspirational image that will resonate with the target audiences, be credible or capable of becoming credible, and reflect personal aspirations. Recognize that a single-person brand will not work in all contexts. Each context will potentially require an adaptation of the master brand or sometimes even a separate brand.

“The end goal is to develop an aspirational image that will resonate with the target audiences”

In particular, a person may need a professional brand and a personal brand. And a professional brand may need a slightly different face for subgroups such as clients, co-workers, subordinates and senior executives. One challenge is recognizing how to reconcile these different brands.

There should be some characteristics that are core to the person and common across all brands. Adaptation can simply involve emphasizing some of these common characteristics in one context more than another. For a professional brand, it might emphasize different talents for different audiences. For a personal brand, the humorous side might be dialed up for friends, and/or the romantic side for a spouse.

There might be contexts in which a person’s brand vision needs to be augmented by adding a characteristic that is not inconsistent but is unique to that context. For example, in the co-worker context, being a mentor player might be a characteristic that is added but doesn’t appear elsewhere.

Develop a program to make the aspirational brand come to life — to reinforce on-brand patterns of behavior, to create programs and to develop communication vehicles. What can and should be done in order to communicate the brand? A good way to get ideas is to consider role models. Who inside and outside your professional or social circle has been successful at achieving the brand vision you aspire to, or at least has been successful with respect to a dimension of the brand vision? How did that person get there? Is there something that can be learned from the role model?

Examining the behavior of successful people almost always stimulates actionable programs that can be adapted. A person brand reflects everything a person is and does, including his or her appearance and actions. That means that there are a lot of tools to work with, but it also means that the task can be overwhelming. In a firm, the culture and values can help guide the implementation of the brand. For a person, some central personality elements or core themes, such as being supportive, might be developed to play that role and inform a wide variety of behaviors.


FINAL THOUGHTS

Managing your own brand will take uncomfortable introspection and discipline in terms of emphasizing “on-brand” thoughts and actions and avoiding being seen as “off-brand.” It is difficult, but it can be very worthwhile.

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Ten Routes to a Successful Brand Extension

These efforts leverage a brand’s established expertise, translating them into bursts of new energy.

A brand extension can be a source of new offering ideas, bursts of energy, brand enhancements, brand building economies and new growth platform. The extension option is not always optimal, but it should be part of most strategy and new product discussions. One key step is to identify extension product categories where a new entry will benefit from and contribute to the brand associations.

The process usually involves identifying the associations and brainstorming where they might be relevant. A more systematic approach is to explore the 10 routes to brand extensions that come from an analysis of successful extensions.

“One key step is to identify extension product categories where a new entry will benefit from and contribute to the brand associations.”

A friend of mine, Ed Tauber, considered the father of brand extensions, did a classic and influential 1988 study of 275 successful extensions in which he concluded most companies employed one of seven approaches to extensions. The Parham Santana extension agency, in conjunction with Ed, has reprised that study by identifying 500 successful extensions and systematically identifying 10 routes to brand extensions. Each of the extensions fit into at least one of the routes. The study furthers our knowledge of strategic extensions and makes the search for potential extensions much more robust and efficient.

10 Examples of Successful Brand Extensions:

  1. Shift the form: Starbucks Frappuccino, Snickers Ice Cream Bars, Black & Decker Role Play Tool Toys, Clorox Bleach Pen, Dial Hand Wash.
  2. Transfer a component: Crayola soap paints (creative color), Entenmann’s “Fresh Baked” Candles, Dr. Scholl’s shoes, Ghirardelli Brownie Mix.
  3. Transfer a benefit: Arm & Hammer Car Litter Deodorizer, Mr. Clean Magic Eraser, Ziplock Food Containers, Weight Watchers Ice Cream Bars.
  4. Leverage an expertise: Food Network cookware, Honda lawnmowers, Gold’s Gym 7-in-1 Body Building system, Mayo Clinic Diet, Reebok Sports Club.
  5. Companion products: Coleman Sleeping bags, Coppertone Sunglasses, Harley Davidson Apparel, Mr. Coffee Premium Coffee, Steinway Furniture Polish, Weber Seasonings.
  6. Leverage the customer base: Trix Yogurt, Smith & Wesson Tactical Police Mountain Bikes, Sesame Street Toys, Barbie Scooter, Adidas Watches, Fisher-Price Diapers.
  7. Leverage a lifestyle: Biggest Loser Kitchen Scale, Coach Fragrance, Cover Girl Sunglasses, Discovery Kids Telescope, ESPN Restaurants, Esquire Furniture, Porsche Kitchen Appliances, Rolling Stone Restaurant.
  8. Leverage a celebrity expertise: Jack LaLanne’s Power Juicer, Jack Welch Management Institute, Jan Fonda Workout DVD, Martha Stewart Bedding, Ralph Lauren Paints, Wolfgang Puck Frozen Pizza.
  9. Leverage a celebrity lifestyle: Cindy Crawford Jewelry, Donald Trump Signature Collection Apparel, Eddie Bauer Baby Stroller, Jessica Simpson Luggage, Kelly Ripa Shoes, Lakers Bottled Water, George Foreman Grill.
  10. Change the game by changing a brand image: Old Spice High Endurance Deodorant, V8 V-Fusion Vegetable and Fruit Juice, Zagat Health Survey Doctor’s Ratings

Of course, getting ideas on the table, even good ones, is only a first step in an often complex decision – see my book Brand Portfolio Strategy. Two points illustrate this complexity.

First, the extension decision is best made in a larger strategy context looking out years and for a stream of extensions rather than as an ad hoc, one-off decision. The “next extension” may not be justified unless the value of adding or changing associations is taken into account.

Second, a key element is the ability of the extension to represent a distinctive solution to a real customer need. We know empirically that “me-too” products seldom succeed, no matter how they are branded. Truly distinctive products that have “must haves” that define new subcategories are the big winners. So even if the extension makes brand sense, there needs to be a compelling offering that is brought to the market.


FINAL THOUGHTS

These examples are proof that when done correctly, a brand extension can be extremely successful. While it can certainly be a complex process and difficult decision to make, the results enable brands to create and dominate new subcategories.

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Which Firm has the Best Brand Portfolio Strategy?

Take a closer look at how four beauty companies organize different products and categories.

When I was writing my book, “Brand Portfolio Strategy“, I would ask executives which firms had excelled in developing a brand portfolio strategy. The most mentioned firm was L’Oréal.

L’Oréal today maintains an admirable “house of brands” strategy in which some 20 brands are used to span the relatively narrow area of cosmetics and skincare in the US. There is a high level of clarity, differentiation and leverage. The portfolio is first divided into four groupings, with little overlap in customers and outlets.

Out of the 20 L’Oréal brands, four are “consumer products” and are distributed through drug and discount stores, 13 are “luxury products” distributed through department and specialty stores, four are “professional products” used by hairstylists, and four are “active cosmetics” sold to dermatologists and other specialists. Within each grouping, the brands have very distinct positioning.

Consider the brand portfolio strategy of these four consumer product brands:

  • Maybelline New York (Maybe she’s born with it, maybe its Maybelline) is trendy, innovative and infused with New York energy.
  • L’Oréal Paris (Because you’re worth it) is affordable luxury with excellence around the Parisian beauty Claudia Schiffer.
  • Garnier (Take care) is inspired by natural ingredients and dermatological science.
  • Softsheen & Carson (My style, my way) is focused on women of color who are looking for confidence, individuality and flair.

All are highly differentiated with strong positions that connect to their audience. In addition, L’Oréal Paris is aggressive with branding innovations such as Pro-Retinal A or Silk & Shimmer Conditioning Technology and is giving them legs. They have a host of sub-brands and endorsed brands such as L’Oréal’s Age Perfect, Couleur Experte, and Feria.

“Each brand has a role and the portfolio as a whole has energy and coherence.”

Finally, the firm also generates descriptive umbrella brands such as Eye Studio, Instant Age, and “Can I help you?” the L’Oreal Paris’ community site. Each brand has a role and the portfolio as a whole has energy and coherence. Consider, in contrast, Shiseido, much more of a branded house, which spans a wide quality/price spectrum and struggles to resonate in segments targeted by L’Oreal, especially in the US and Europe. There is too little attention paid to the brand portfolio and how each brand needs a role and reason d’être. In part this is due to decentralized organizations that fail to coordinate brands and in part this is because portfolio strategy is simply neglected.


FINAL THOUGHTS

A faulty portfolio strategy can result in marketplace confusion, wasteful internal competition, misallocation of resources, ineffective marketing, aimless brand proliferation, new product naming mistakes and lost opportunities to leverage strong brands.

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Emart’s Transformation to a World-Class Retailer

Reconsidering customer experience and types of shopping trips leads to high-impact expansion.

After years of leadership in its home market, and being called the “Korean Walmart,” Emart is pushing hard to become recognized as a world-class retailer in its own right. And it’s using strategy-led design to get there. Strategy-led design is the seamless integration of the brand and business strategy with design. This approach is rooted in a deep understanding of the customer, which is built into every facet of design, whether visuals like logos and signage or the experience itself.

Emart’s direction is in keeping with the leadership tradition that has marked the company as South Korea’s first discount retailer since its launch in 1993. Moves like its fresh market grocery, occupying the entire first floor of its typically three-level hypermarkets and being first to adopt an “everyday low prices” policy helped cement its position. Today, it operates 130 stores in Korea that produce £6bn annually in turnover.

In recent years, Emart has faced soft sales in a very difficult market environment. The consumer base is very homogenous and any significant point of competitive differentiation is immediately copied.

The challenge became clear – to achieve world-class retailer status, Emart would need to undergo a major transformation. It needed to more effectively engage customers through an experience unlike any other in the market. To enable this strategic transformation, Emart realized it would need a complete rethink of its hypermarket brand and experience, and to develop stand-alone retail formats to drive growth. It appointed Prophet to chart the way, using our strategy-led design approach as the basis for the process.

“To achieve world-class retailer status, Emart would need to undergo a major transformation.”

Building up an understanding of Emart customers was particularly challenging because Korean consumers all tend to have similar demographics, attitudes and shopping behaviors. Moreover, 80% were already shopping at Emart. That made typical segmentation studies about “who” was shopping there less germane than “why” they were.

It took a novel and innovative approach to identify segments based on trip types and their corresponding needs, the economics of different shopping occasions and how retail formats and shopping occasions intersect. Over a six-month period, we delved into why Korean customers shopped at both Emart and its competitors across 10 major product categories.

Eight occasions were identified – such as “everyday needs”, “quick mission” and “social outing” – and prioritized against brand and business credibility, along with execution capability. This selection became the filter for understanding the customer needs that had to be built into the brand.

Understanding customer behavior was one thing. Finding ways to link and drive their shopping occasions to an Emart versus a Lotte Mart or Tesco’s Home Plus – all major players in Korea – posed another challenge. Despite the popularity of its fresh groceries, the lack of cohesiveness in the rest of the store was a detriment to delivering the kind of clear brand story and consistent customer experience that can translate into brand loyalty and greater sales.

Emart’s hypermarket stores are typical of Korean retailing. From one section to the next, the style, feel and look are dramatically different. This promotes customer confusion. Shoppers are awash in a variety of point-of-sale communications. It all results in unclear messaging and an inconsistent experience.

Retail executives walk their stores with an eye on merchandising and signage. They don’t typically put themselves in the customer’s shoes to understand what they are feeling – excitement at exploring the store or dread at wasting time trying to fight the crowds to find five specific items.

We were able to put Emart’s leadership (and our own team) into its shoppers’ shoes by utilizing a technique we call Experience Attribute Mapping (EXAM). This allows us to map the customer experience in minute detail, from the customer’s perspective. From there, we apply elements of what the brand strategy should be at various key interaction points. How this greater understanding of Emart’s customers and the shopping experience will play out in a repositioned brand is still a work in progress. But Prophet was able to provide a taste of the possibilities through the development of three new store formats all designed and opened in 100 days.

The challenge was to transform an underperforming Emart store, which had been a Walmart, with formats that previously hadn’t existed in Korea: a warehouse/club-style store (minus membership requirements), a lifestyle-oriented electronics store and a pet store.

The 17,000-square-metre ground floor was given over to Emart Traders – characterized by mass merchandising, value pricing and bulk purchases of everything from fresh food to office supplies. Featuring a clean, simple and well-organized flow, it emphasizes deals, through bright and inviting signage, along with a merchandising presentation of open cases on shipping pallets.

Matrix, the electronics division, departs from the single-manufacturer stores that typify Korean electronics retailing. It emphasizes interactivity, with demonstration areas that hadn’t previously been employed in the market. It also focused on customer needs, with “watch” “listen” and “play” sections, which shoppers gravitate to according to the type of product they want. It also has a more urban feel – reinforced with graffiti on concrete surfaces.

The pet department, Molly’s (named after one of the Emart chairman’s dogs), shares the first floor with Matrix and is a huge draw to people who normally shop for pets through vets or online. The bright and lively environment features color cues to denote different departments – from the Beauty Studio’s (grooming) bright topaz blue to the blue and white of Molly’s Café where owners (known as pet parents) and dogs can enjoy a meal together.


FINAL THOUGHTS

All three concepts have exceeded Emart’s expectations and are being rolled out more broadly. They established the value of identifying customer needs and creating an engaging experience to address them. And as the retailer moves closer to bringing its new positioning to life in its stores, it can understand the role of customer-focused, strategy-led design in its move to the world stage.

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