Brand Portfolio Secrets to Success (5 Things You Need to Know)

How do you know when you have too many variants in your brand portfolio? In my opinion, the answer is that it’s when you can’t answer that question! Can you?

One of the most popular evergreen posts on C3Centricity is “The Beginners Guide to Brand Portfolio Management.” It seems that we all suffer from a deep-rooted fear in managing and reducing our brand portfolio, especially when it includes many historic or regional variants.

That is why I decided to write about these best-kept secrets in portfolio management, which even large corporations are not always aware of!

 

MORE IS RARELY BETTER!

We live in an over-abundant world of consumer choice, but more is rarely better. The paradox of choice is a powerful concept  popularised by Barry Schwartz.

It states that people actually feel freer when they are given fewer choices. Have you never ended up walking out of a store without the purchase you had planned, because you had been faced with too many choices? I know I have – often!

It is said that the limited choice offered in hard discounters in one of the reasons for their success; it’s not only about lower prices.

They usually present just one or two brands for each item they stock and the branded products they do stock are almost always at the same price if not even higher than in normal supermarkets.

In this over-abundant world of consumer choice, more is rarely better. #consumer #brand #Marketing Click To Tweet

More than ten years after the first research on which Schwartz based his theory, new studies have given some alternative perspectives on choice, claiming that large assortments are not always a bad thing. In the study by Gao & Simonson, they propose that there are many factors which were forgotten in Schwartz’s original study.

You can read the full article on this latest work in Neuromarketing. What I found of particular interest, being the customer champion that I am, is that they conclude by saying that it all depends on understanding your customer – doesn’t everything?! Their summary findings state that:

“In certain situations (when the ‘whether to buy’ decision comes before the ‘which option is best’ decision) a large assortment CAN increase purchase likelihood. Especially in eCommerce, it is possible to reap the benefits of a large product assortment, while helping customers make choices?”

In other words, the online searches that we all now perform before purchasing many things, will benefit from a wide selection of offers. Once we have decided to buy, then a large choice can become a barrier to final purchase.

THE SECRETS

In conclusion, to summarise the best strategies for brand portfolio management, which seem to be a well-guarded secret since many corporations still ignore them, are:

  • Remember, that if you offer a vast choice of variants for each brand, consumers could get analysis paralysis and end up walking out of the store without buying anything.
  • You need to manage the corporate brand just like your other brands, especially if it appears prominently on packaging and your other communications’ materials.
  • Make an annual review of all your brands and variants and ruthlessly cut the bottom 20%. If you want to keep any of them, then you must have a good reason – such as that it’s a recent launch – and a plan to actively support them.
  • Innovate less but better. Be more targeted with each of innovation and include your consumers in their development.
  • Be realistic in your distribution targets. Know what will sell where and why. Not only are you more likely to keep your share, but you’ll also make friends with your retailers.

 

Coming back to the leading consumer brands from the Interbrands’ list, all top ten excel in brand portfolio strategies that are precisely differentiated, clearly targeted and well communicated.

David Aaker wrote an article on L’Oreal a few years ago that explains the above theories very well. Even if it’s from December 2013, not much has changed and it still makes a great read; highly recommended.

I believe that most brands with tens or hundreds of variants in a market, are being managed by lazy marketers. People who don’t have the courage to manage their brands effectively by regularly trimming their poorest performers. They must face up to the lack of success of some of their “babies”.

Are you one of these marketers? What’s your excuse? I’d love to hear your reasons for keeping all your SKUs.


Need help in cleaning up your brand portfolio, so you can put your efforts where they will bring the most return?

Let us help; contact us here.


C3Centricity used images from the book “Winning Customer Centricity” in this post.

 

Brand Recognition and How People Recognise Brands

Brands are expressed in many ways, many of which will help build brand recognition.

I wrote a highly popular post on the topic last year, which I would recommend reading first for background, if you missed it. It’s called “What Every Marketer Needs to Know about Brand Image, Equity, Personality & Archetypes”

Since then, I’ve been thinking a lot about what brands are, above and beyond their names, logos and the product or service they offer.

Which of them have a face, a voice, an aroma, a unique packaging, a slogan or a sound that immediately identifies them? And if they do, what does it bring in addition to the brand in terms of brand recognition?

Here is a very personal perspective of some of the best examples in each area. Feel free to add your own in the comments below.

 

Face

Some of the faces which represent brands are of celebrities, others of unknown people who become celebrities.

One of the first faces I think of for a brand is Flo from Progressive. She has won the hearts of Americans over the years, with her helpful but quirky discussions with potential customers.

Flo has also made insurance less confusing and more friendly through her “girl next door” looks and sparky attitude. Here’s one of the more recent ads with Flo.

 

In 2012, an animated box was added to their campaign concepts, to represent the company’s products. Apparently, the vast number of ads with Flo – over 100 – had resulted in a “love her or hate her” relationship as some found her off-putting.

Take a look at an example below from a few years ago and decide for yourself if the animated box is better than Flo.

 

 

George Clooney has been the face of Nespresso for many years now. He started as smooth and superior, but over the years he has become more approachable, even funny. The latest commercials actually show him being injured in various ways, from falling pianos to “Mafia-type makeovers!” They are always entertaining, even for non-Nespresso drinkers.

 

 

Perhaps Nestle is trying to open their appeal to younger coffee drinkers who enjoy humour and hoping that the videos get shared on social media?

There are many other examples of “faces” that we now immediately recognise and associate with their brands. Even if some have been dropped over the years, they still maintain their strong connection:

SC Johnson’s Mr Clean and the muscle man

Quaker Oats and the Quaker.

Coca-Cola and the Polar Bear

Marlboro and the Cowboy – Darrell

Duracell / Energiser and the Pink Bunny

 

Each face is chosen to represent the brand because it fits with the values with which it wants to be linked.

The Muscle man suggests toughness, never tired, perfect for house cleaning when you want the quickest and easiest solution to difficult jobs.

The Quaker implies integrity, harmony, simplicity, perfect for natural products.

The Polar Bear is associated with cold, stimulating, refreshing liquid (ocean), perfect for a carbonated soft drink.

The Cowboy suggests independence, freedom, strength, perfect for a masculine brand.

The Bunny implies endurance. never-ending energy, perfect for a long-lasting battery.

The advantage of a cartoon character over a real person is that associations are unlikely to change. Just consider some of the recent sporting disasters which resulted in brands firing their “faces”.

 

Almost all celebrity spokespeople are required to sign an agreement containing certain moral or behavioural clauses. These give the brands the right to cancel a contract if the celebrity does something which could be damaging to the brand.  Nike has done this with Maria Sharapova, Manny Pacquiao, Michael Vick and Lance Armstrong.  Tiger Woods was apparently dropped by Gillette, Accenture, AT&T, Gatorade and Tag Heuer. Wow, that must have lowered his income somewhat!

Find out more about the challenges of choosing a face for a brand in this article on advertising law, and this one on the top 15 athletes who were dropped by their sponsors.

 

Sound / Voice / Tone

Besides the faces of celebrities, some brands have adopted a very individual voice or sound. These can be actual voices, such as the infamous Budweiser’s Wassup campaign that was first aired in 1999. (yes really that long ago!) Or the tones used in print advertising, which has become even more important with the rise of social media.

 

 

Branding is becoming ever more challenging with the explosion of products and new product offers being launched each year. Therefore to stand out from the competition, a brand needs more elements to identify its image and personality.

As I have shared, a brand’s face, voice, sound, tone, aroma and pack all increase its differentiation and enhance brand recognition.

In addition, research shows that stimulating more of a user’s senses significantly increases loyalty. It has been estimated that senses account for 25-30% of a brand’s revenue! So what are you waiting for?  

For more ideas about improving your Brand Building, check out our other content. And if you need more support then contact me here: https://c3centricity.com/contact

How to Stop Brand Decline: Following Brand Image is More than Meets the Eye

If the headline caught your eye, then you are probably challenged by a declining brand. Am I right?

Unfortunately for you, I’m not going to give you an easy five-step solution to turn around that faltering, or dying brand. And I will chastise you for letting it get that far! But I’ll also give you five ideas to help you understand why your brand is declining.

I was speaking with an ex-colleague of mine who is frustrated by her boss – aren’t we all at times? She is working on a brand that is globally doing OK, but the brand image results are beginning to show some worrying signs. The most important attributes identified for the product are all trending in the wrong direction.

Her boss continues to argue that since sales are good, why should they worry? He even went further and claimed that as the brand’s sales were doing well, there was no reason to continue to measure its image! This is just madness; wouldn’t you agree?

Brand image metrics are one of the best ways to follow the health of the brandif you are following the right attributes. 

Brand image metrics are one of the best ways to follow the health of the brand. #brand #marketing #brandimage Click To Tweet

By right I mean metrics that are relevant for the brand and the category. I have heard marketers request to measure their advertising slogans in a brand image study. This is obviously wrong, but it still comes up regularly when I’m working with a relatively inexperienced marketer. The reason you don’t is because slogans change, but the essence of a brand shouldn’t.

So if you don’t measure its advertising (directly), what should you measure? I think that the three most important areas to cover are:

  • the rational, functional benefits
  • the emotional, subjective benefits
  • the relational, cultural benefits

Let me give some examples, so you better understand:

  • Rational, Functional: removes stains, has a crunchy coating, offers 24-hour service.
  • Emotional, subjective: trustworthy brand, high quality, makes me more attractive.
  • Relational, cultural: a Swiss brand, trendy, traditional

In addition to these three image areas, I would suggest you also follow the brand’s personality and value perception. Both of these will impact its image and can provide clues to help understand changes in the image.

One further best practice is to also follow your main competitors so you have a good perspective of the category and its main selling points. Sometimes declines in image come from a competitor emphasizing an attribute for which you were previously known. As a result, although your brand hasn’t changed anything, its association with the attribute can decline due to the competitive actions.

Coming back to my friend and her manager, she asked me what she could do to persuade her boss to continue measuring brand image. This is what I told her to discuss with him.

  1. Review the attributes that have been measured, especially those showing the largest changes. Can you agree on why these have happened? Are you measuring the right metrics that cover the category or are you in need of updating them? Markets change and perhaps your attributes no longer reflect the latest sensitivities. This might be the reason for the image declines while sales continue to rise because the brand corresponds to these new customer needs and desires.
  2. Review customer care line discussions to see what customers are calling in about. See if there are any comments that tie in with the image attribute changes. These discussions will also highlight any areas that you are not currently following in your image tracker – see #1.
  3. Review your customer persona. Have you followed their changes or are you appealing to a new segment of users? If the latter, this might explain the sales increases. However, if you are measuring your brand image on a sub-group of category users that no longer reflect your current customers, this could explain the decreasing metrics. For more information on how to complete a detailed persona description, check out “How well do you know your customers?”
  4. Review market dynamics. If you are following sales and not share, you may be losing customers to other brands which are driving market growth. This might explain why sales are growing, but the image is declining.
  5. Review social media discussion. Today we have the luxury of finding out what people really think about a brand from discussions on social media. If your brand has a solid following or a respected customer base that shares their experience online, then this is a great way to know what is working and what is not. People tend to share negative experiences more than positive ones, so rather than taking offence we can obtain valuable information about a brand’s vulnerabilities.

These five areas will make for a lively discussion for my friend and her boss. They should also provide the necessary information for you to slow and hopefully reverse the negative sales trend of your brand. Of course, once you have the knowledge on what to do, you will need to take appropriate actions, but I’ll cover that in another post.

Have you tried other ways to manage a declining brand? Have I missed other actions to take to better understand what is happening? If so I’d love you to share your own experiences.

Winning customer centricityThis post includes concepts and images from Denyse’s book  Winning Customer Centricity. You can buy it in Hardback, Paperback or EBook format in the members area, where you will also find downloadable templates and usually a discount code too.

The book is also available on Amazon, Barnes and Noble, iBook and in all good bookstores. If you prefer an Audiobook version, or even integrated with Kindle using Amazon’s new Whispersync service, it’s coming soon!

How to Stop Customer Satisfaction Drip, Dripping Away

I recently spent a few days in a condo that I have rented before in Miami Beach. It is a wonderful penthouse suite with panoramic views of the sea to the east and Miami city and port to the west. I rent it because I am always delighted to spend a few days of vacation in such a perfect place.

However, this last time I wasn’t happy. What has changed? Very little really but enough to make me feel disappointed. That made me reflect on how quickly our customers can move from delighted to dissatisfied because of some small detail we might have overlooked or which we ourselves see as irrelevant. Let me explain.

  1. I arrived at the condo building, but the usual doorman with whom I had built a good relationship has been replaced by a new person. Just as efficient but not “my” doorman; he didn’t know me so he came across as less welcoming and friendly. In the business world our customers like to be recognized for their loyalty.
  2. The condo was as perfect as ever, but had obviously been cleaned in a rush in time for my arrival. It smelt wonderful of course, but I didn’t notice the high-sheen tiled floor was this time wet and I went skidding onto my backside as soon as I entered. Customers notice when things are wrong more than when everything is right.
  3. The usual paper products were supplied, but only four sheets of kitchen roll and not many more of toilet paper! No big deal but it meant I had to immediately go out and buy them first thing the following morning instead of lazing at the beach. Customers will sometimes buy a competitive product rather than go searching when yours is out-of-stock.
  4. I went to bed early upon arrival because I was tired from the sixteen hour trip and the six hour time difference. I had never noticed before but neither the blinds nor the (too short) curtains cut out the daylight, so I tossed and turned for hours before sleep finally took over. Small issues with your product or service may go unnoticed – at least until there are many more “small issues.”

I am explaining these details to demonstrate how little things can build upon one another to create dissatisfaction. The same can happen to your customers. So ask yourself, what little changes have you been making that your customers haven’t (yet) noticed?

  • Reducing pack content just a little
  • Reducing the cardboard quality of packaging
  • Making the flavouring just a little more cheaply
  • Increasing the price just a few cents
  • Shipping just a few days later than usual
  • Call centres being not quite as friendly as they used to be
  • Response time to queries and requests a little slower than before

These adaptations are unlikely to be noticed by your customers at the time they are implemented, unless they are already unhappy with your product or service. The minor changes you have been making over the past months or years will have gone by without any impact on sales. Therefore you decide to make a few more. Each will save you a little more money, which adds up to big savings for you.

However, one day your customers will notice and question their original choice (>>Tweet this>>). To avoid this slow drain on your customers’ satisfaction and delight, here are a few ways to avoid this situation arising in the first place:

  1. When you run product tests, compare not only to the current product and your major competitors but also to the previous product. (or its ratings if the product is no longer available)
  2. Run a PSM (price sensitivity meter) or similar test to check levels of price perceptions and acceptable ranges.
  3. Measure br and image on a regular basis and review trends not only the current levels.
  4. Check that call centres are judged on customer satisfaction and not (just) on the number of calls answered per hour.
  5. Offer occasional surprise gifts or premium services to thank your customers for buying.
  6. Aim to make continuous improvements in response times both online and in call centres.

Perhaps surprisingly, in many categories, customer satisfaction, loyalty and delight come from the small differences and not the big basics (>>Tweet this<<). For example:

  • Consumers are delighted by the perfume of a shampoo more than by the fact that it cleans their hair.
  • Amazon surprises and delights its customers by occasionally offering premium delivery for the price of st andard.
  • Kids will choose one fastfood restaurant over another because of the “free” gifts offered.
  • Women love to buy their underwear from Victoria’s Secrets because they walk out with a pretty pink carrier bag overflowing with delicate pink tissue paper.
  • Men buy their girlfriends, wives and mistresses jewellery from Tiffany because they know that the little aqua box they present to their loved one already says it all, even before it is opened.
  • A car is judged on its quality and safety by the “clunk” of the door closing, more than its safety rating.

In today’s world of dwindling product / service differentiation and an overload of choice, which I already spoke about in the last post entitled “Do your Shoppers face a purchasing dilemma? How to give the right customer choice every time”, your customers want to be made to feel cared-for, not cheated. Find new ways to surprise and delight them and they will remain loyal, even if you have to increase your prices. As L’Oreal continues to remind its consumers every time they buy one of their products, “They’re worth it”.

If you would like to review your br and building and learn new ways to catalyse your own customers to greater loyalty and delight, then contact us for an informal discussion of your needs. I know we can help.

Winning Customer Centricity Book

Don’t forget to check out my latest book Winning Customer Centricity. It’s available in Hardback, Paperback and eBook formats on Amazon and andnoble.com/w/winning-customer-centricity-denyse-drummond-dunn/1121802409?ean=9782970099802″ target=”_blank”>Barnes & Nobles, as well as in all good bookstores. And if you haven’t yet joined, sign up for free to become a C³Centricity Member  and get a DISCOUNT CODE as well as many free downloads, templates, case studies and much more.

C³Centricity used an image from Miami andBeaches in this post.

 

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