Reputation and Trust: Do you Have Both?

At the end of last year I asked readers to send me their biggest challenges for 2014. The winning question was related to innovation, which I wrote about last week: “This is why your new products crash & burn“.

Another of the questions I received was related to measuring equity and the relative importance of following the image of the br and or the corporation. I respond below to this interesting dilemma and propose some ideas about what you should be following.

The three essentials of br and valueLet me start by saying that I covered br and image metrics in some detail last year in a popular post  called “ How to Build Br and Reputation and Consumer Trust: And then Track it”. The article spoke about the three important areas that you need to measure in order to have a complete perspective of your br and image, namely Rational / Functional, Emotional / Subjective and Cultural / Relational.

Whilst this is the simplest method for measuring br and equity, it is said that there are in fact seven essential elements that make a business great in the eyes of the customer. These elements are a combination of product perceptions as above, together with those of the enterprise. Perhaps surprisingly, the latter actually trump the former in driving behaviours today, so corporate reputation is now essential to follow too. It also suggests that whilst product performance, services and innovation are important, it is the companies behind the br ands that influence a consumer’s trust and final choice. If you’d like to read more about this, please click on the above link where you can find more details.

Coca Cola logo

However, measuring br and image and corporate reputation is still not going to give you all the answers you need. One of the areas that few organisations study today, even when they measure both of these, is the relationship between the images of the br ands and the company.

Unilever AXE logoFor some br ands such as Coca Cola, the relationship is both obvious and strong, whereas for Pantene or Axe the link to P&G  and Unilever may be far less evident.

P&G Pantene logo

Despite an increasing effort by both companies to strengthen the association between their br ands and themselves as manufacturer, the connection remains tenuous at best.

So how do you measure this link and underst and what the br and brings to the corporation and vice versa? Read on for a simple process.

Following Br and & Corporate Reputations is a 3-step process

Step 1: Measure your br ands’ images

Hopefully you are already doing this on a regular basis. If not please start immediately since you cannot manage br ands without knowing where you are today, even if you have a clear idea planned for where you want to go. The post linked above gives you a start on getting this done.

The one addition that you may have to incorporate in your current questionnaire is to ensure that you clearly identify whether the respondent knows who makes each of the br ands. Continue Reading

How to Innovate better than Apple

Last week I gave a lecture to a group of Executive MBA students at Miami University. It was a fabulous new experience for me, having only done lecturing in European Business Schools until now. There were lots of great questions and many comments about why organisations do what they do when looking to innovate.

It’s always easier to identify the sub-optimal processes a company uses when you’re on the outside and even easier to suggest possible changes that are needed, but when you are in the heat of the action, it is not so obvious.

I therefore thought it would be useful to list some of the ideas we came up with, in the hope that it will help all those challenged to improve the status quo within their own organisations and to provide some new ways to look at innovating outside the box.

 

#1 What business are you in?

When you are looking to innovate, instead of starting with your own current technology and skills, or products and services, how about taking a step back and thinking about what business you are really in. Lego is a great example; they realised that they were not selling (just) toys; they understood that they were in the imagination business. Which business are you in? Do you have an opportunity to redefine it? Here are some ideas to get you started:

  • Food: Family Time, Neutraceuticals – offer family sized portions, children’s play areas, partner with another industry as Nestlé did with L’Oreal when creating Inneov
  • Cigarettes: Personal Pleasure – tobacco companies should be going far beyond their current simplified expansion into electronic cigarette offerings
  • Alcohol / Beverages: Fun / Relaxation: br and lounges, music, video or internet services
  • Pharmaceuticals: Wellness – instead of curing or treating, offer prevention

 

#2. Can you add something new to an existing product?

Professor Steenkamp Knox Massey Distinguished Professor of Marketing and Area Chair of Marketing at Kenan-Flagler, proved back in 2007 that at least for Fast Moving Consumer Goods, small innovations (which are often referred to as renovations) can be just as successful as large step-changing breakthrough innovations. His research came to the conclusion that it was the ones that fall in the middle of “newness” that don’t meet with significant customer success. So what small changes can you make to your current offer to make it more appealing?

How about adding sound to a food, as Kellogg’s did with their Rice Crispies or Nestlé did by adding a layer of chocolate to the top of their cream deserts in France? Or what about adding smell to your outlet, as bakers and coffee houses already do these days, or Singapore Airlines did many years ago? A small change can have a big impact, especially if tapping into a different sensory perception from those customers are used to having stimulated.

 

#3. Can you add a service to the product?

Some products are actually designed to work with services, which are quite often the more expensive part of the sales equation (e.g. Continue Reading

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