How generating more Love for your brand will make You More Money

Love = Power = Profit

This message is for the Brand Leaders who many times stick to the straight rational management of a brand.  I grew up in the CPG Brand Management world.  And today I’m about to tell you a message that you likely hear all the time from your agency:  you should be more emotional with your brand!   I preface it by saying I’m one of you (client), not one of them (agency).  It’s very common among clients to think that way because we get frustrated that the agency doesn’t deliver what we want.  From my experience, many Brand Leaders still say:  “Give me a very straight forward ad that delivers the message we know will work”.  When an agency starts to push for us to be more emotional, we immediately think they are just trying to win an award.  

I guess I wished I listened to my agency.  But I just wish the agency went a layer deeper and connected going emotional with making more money and then they would have gotten my attention more. Hey Agencies:  Try telling your client this next time:  We should be more emotional because then you’ll make more money.  If you could generate more love for your brand, that would give you more power in the market and that power would  help you to drive more profits.

love = power = profit

Here’s the theory part on how the more love you create, the more power you command and the more money you make.  Brands sit somewhere on the hypothetical Brand Love curve, going from Indifferent to Like It to Love It and finally becoming a Beloved Brand.  Brands can connect with the consumer through 5 sources:  how strong is the promise, how good is their story, how focused is their strategy, how do they keep the brand fresh through innovation and how do they turn all this into an experience beyond the product.  It is the Brand’s connectivity and love that generates power for your brand–a power with the very consumers who love it, versus the channels who carry it, the competitors who fight you, possible new entrants trying to de-throne you, influencers who recommend you, suppliers, the employees and the media.   Having power enables your brand to generate higher profits in 8 ways, through price points, trading up/down, product costs, marketing costs, stealing other users, getting users to use more, entering new categories or creating new ways to use for the brand.

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There are 5 Ways to Generate more Love for your Brand
  1. The brand’s promise sets up the positioning, as you focus on a key target with one main benefit you offer.  Brands need to be either better, different or cheaper.  Or else not around for very long.  “Me-too” brands have a short window before being squeezed out.  How relevant, simple and compelling the brand positioning is impacts the potential love for the brand.  Apple goes above just their product with a promise of simplicity that allows everyone to experience the future through technology.
  2. The most beloved brands create an experience that over-delivers the promise.  How your culture and organization are set up can make or break that experience.  Hiring the best people, creating service values that employees can deliver against and having processes that eliminate service leakage.  The culture attacks the brand’s weaknesses and fixes them before the competition can attack.  With a Beloved Brand, the culture and brand become one.  I love the Starbucks experience that has been created with coffee as the base, but they have gone so deeper to enable magical moments for their consumer.
  3. Brands also make focused strategic choices that start with identifying where the brand is on the Brand Love Curve going from Indifferent to Like It to Love It and all the way to Beloved status.   Marketing is not just activity, but rather focused activity–a focused target, a focused message, focused strategic choices, focused activities always with an ROI mindset.  Where you are on the curve might help you make strategic and tactical choices such as media, innovation and service levels.  Slide1Find those who are most motivated to buy what you do best.  I love how Volvo is so singularly focused on the safety message since 1954.   Yes they have leather seats and a great radio, but the message is always safety first.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea.  At Apple, every new product must deliver simplicity and at Volvo, the innovation must deliver the safety promise.
  5. Beloved brands can tell the brand story through great advertising in paid media, through earned media either in the mainstream press or through social media.  Beloved Brands use each of these media choices to connect with consumers and have a bit of magic to their work.  John Lewis out of the UK, is an employee-owned store growing double digits right through the recession because of their commitment behind amazing story telling around the simple message of the gift of giving.

There are 12 ways to turn the Love to Generate Power for your Brand

A brands connection between consumer is a power.  And that power translated itself into 12 forces of a power that a Beloved Brand wields, (show below).

A Beloved Brand with a loyal group of followers has so much more power–starting with a power over the very consumers that love them.   These consumers feel more than they think–they are e-rational responding to emotional cues in the brand.   They’ll pay a premium, line up in the rain for new products and follow the brand to new categories.   Look at the power Starbucks has with their base of consumers, making their Starbucks moment one of their favorite rituals of the day and how consumers have now added sandwiches and wraps to those rituals.  All day long, Starbucks has a line up of people ready for one of their favorite moments of their day.

Using Porter’s 5 forces, we can see that the love also gives Beloved Brands power over channels, substitutes, new entrants, or suppliers.   People rather switch stores than switch brands.  Apple has even created their own stores, which generate the highest sales per square foot of any retailer.  These brand fans are outspoken against competitors and suppliers will do what it takes to be part of the brand.  In Apple’s case, Intel has given them the lead on new chip technology.

Beloved Brands have a power over employees that want to be part of the brand and the culture of the organization that all these brand fans are proud to project.  People at Starbucks love working there and wear that green apron with a sense of pride.  Brand fans know the culture on day 1 and do what it takes to preserve it.

Beloved Brands have a power over the media whether that’s paid, earned, social or search media.  Apple generates over a billion dollars of free media via the mainstream media and social media.  Competitors complain about Apple getting a positive media bias–they are right, they do.  Even for paid media,beloved brands get better placement, cheaper rates and they’ll be the first call for an Integration or big event such as the Super Bowl or the Olympics.   Nike did such a great job with social media during the London Olympics that people thought they were the main shoe sponsor–when it was Adidas.

Beloved Brands have a power over key influencers whether it’s doctors recommending Lipitor, restaurant critics giving a positive review for the most beloved restaurant in town  or Best Buy sales people selling a Samsung TV.  They each become fans of the brand and build emotion into their recommendation.  They become more outspoken in their views of the brand. And finally beloved the Beloved Brand makes its way into conversation at the lunch table or on someone’s Facebook page.  The brand fans are everywhere, ready to pounce, ready to defend and ready to say “hey, you should buy the iPhone”.  The conversation comes with influence as crowds follow crowds.  This conversation has a second power, which creates a badge value.  People know it will generate a conversation and are so proud to show it off.  After all, they are in the club. All twelve of these forces combine to generate further power for the brand.

How to use the Love and Power to generate more Profits for your brand

With all the love and power the Beloved Brand has generated for itself, now is the time to translate that into growth, profit and value. The Beloved Brand has an Inelastic Price.  The loyal brand fans pay a 20-30% price premium and the weakened channels cave to give deeper margins.  We will see how inelastic Apple’s price points are with the new iPad Mini.   Consumers are willing to trade up to the best model.  The more engaged employees begin to generate an even better brand experience.  For instance at Starbucks, employees know the names of their most loyal of customers.  Blind taste tests show consumers prefer the cheaper McDonald’s coffee but still pay 4x as much for a Starbucks.  So is it still coffee you’re buying?

A well-run Beloved Brand can use their efficiency to lower their cost structure.  Not only can they use their growth to drive economies of scale, but suppliers will cut their cost just to be on the roster of a Beloved Brand.  They will benefit from the free media through earned, social and search media.  They may even find government offer subsidies to be in the community or partners willing to lower their costs to be part of the brand.  For instance, a real estate owner would likely give lower costs and better locations to McDonald’s than an indifferent brand.  Apple get a billion dollars worth of free media, with launches covered on CNN for 2 weeks prior the launch and carried live like it’s a news event.

Beloved Brands have momentum they can turn into share gains.   Crowds draw crowds which spreads the base of the loyal consumers.  Putting the Disney name on a movie generates a crowd at the door on day 1.  Competitors can’t compete–lower margins means less investment back into the brand.  It’s hard for them to fight the Beloved Brand on the emotional basis leaving them to a niche that’s currently unfulfilled.  Walk past an Apple store 15 minutes before it’s open and you’ll see a crowd waiting to get in–even when there are no new products.

Beloved Brands can enter into new categories knowing their loyal consumers will follow  because they buy into the Idea of the Brand.  The idea is no longer tied to the product or service but rather how it makes you feel about yourself.  Nike is all about winning, whether that’s in running shoes, athletic gear or even golf equipment.  When Starbucks went for pastries and sandwiches the consumer quickly followed.

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Beloved = Power = Growth = Profit

 

To read more about how the love for a brand creates more power and profits:

 

email-Logo copyABOUT BELOVED BRANDS INC.:  At Beloved Brands, we are only focused on making brands better and making brand leaders better.Our motivation is that we love knowing we were part of helping someone to unleash their full potential.  We promise to challenge you to Think Different.  gr bbi picWe believe the thinking that got you here, will not get you where you want to go.  Our President and Chief Marketing Officer, Graham Robertson is a brand leader at heart, who loves everything about brands.  He comes with 20 years of experience at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke, where he was always able to find and drive growth.  Graham has won numerous new product and advertising awards. Graham brings his experience to your table, strong on leadership and facilitation at very high levels and training of Brand Leaders around the world.  To reach out directly, email me at graham.robertson@beloved-brands.com or follow on Twitter @grayrobertson1

 

At Beloved Brands, we love to see Brand Leaders reach their full potential.  Here are the most popular article “How to” articles.  We can offer specific training programs dedicated to each topic.  Click on any of these most read articles:

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How to Determine your Brand’s Health using Brand Funnels

Brand Funnels

Every brand should understand the details of their Brand Funnel–what’s causing any strength, weakness, changes versus last year or gaps versus competitors.  brand-funnelA classic funnel would measure awareness, familiar, consider, purchase, repeat and loyal.  But in the change of consumer behavior over the last 10 years, I would now add SEARCH between consider and purchase.

At the very least, you should be measuring Awareness, Purchase and Loyalty rates.  While sales, share and profits are the obvious measurements of a brand, they are easy to see but are the end result.

Brand Health vs Brand Wealth

When we first analyze a brand’s performance, we start by looking at the wealth of the brand and look at things like sales, share, margins.   That’s a great starting point, but anyone can see those numbers.  But that’s like judging someone’s health just by looking at them.  You’d miss out on the cholesterol, blood pressure and the internal health an xray or MRI might show.   Looking at Brand Health would include looking at how well the brand funnel performs, voice of customer, satisfaction scores and any major changes in market trends.  Think of Brand Wealth as the measures you can easily see, and the Brand Health as those measures you can’t easily see.  

Slide1The brand funnel provides a  rich diagnosis of the true health of the brand before they even show up in share reports and provides possible indicators of future performance.  Almost like a finger print, every brand has a unique brand funnel.  Your brand will have certain strength as well as leaks in the funnel.

Analyzing Brand Funnels

Here are the five steps to analyzing the brand funnels.

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  1. First take a look at the absolute Brand Funnel scores, compare them to last year, compare to competitors and versus the category norms.  An Indifferent brand will have a skinny funnel, a Like It brand will have a funnel that quickly narrows near purchase.  Loved Brands will have a more robust funnel, maybe with one easily identified gap.  And Beloved Brands have no gaps on the funnel. 
  2. Then you want to look the Brand Funnel Ratios, finding the percent conversion from one stage to the next.   To create the ratios, divide the absolute number by the number above it on the funnel.  For instance in the example above, take the Familiar score of 87% and divide it by the Awareness score of 93% and the ratio conversion is 91%.  That means that 91% of those who become Aware will move to Familiar. Slide1
  3. What’s most useful is to compare the Ratios of your Brand to the Ratios of your nearest competitor.  In this second part of the analysis, the ratio becomes the focus.
  4. You then want to compare the ratios, finding the gap at each of the stages.  You will start to see where your ratio will either be stronger or weaker than the comparison brand.
  5. Analyzing the difference between the two brands finds the biggest gaps and begins telling a strategic story for the gap.
Matching the Funnel up The Brand Love Curve

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life.  At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings.  Consumers become outspoken fans.  It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with.  The farther along the curve, the more power for the brand.  It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand.

With each stage of the Brand Love Curve, the consumer will see your brand differently.  The worst case is when consumers have “no opinion” of your brand.  They just don’t care.   It’s like those restaurants you stop at in the middle of no-where that are called “restaurant”.  In those cases, there is no other choice so you may as well just name it restaurant.  But in highly competitive markets, you survive by being liked, but you thrive by being loved.  Be honest with yourself as to what stage you are at, and try to figure out how to be more loved, with a vision of getting to the Beloved Brand stage. 

  • Indifferent: When you are indifferent, you’ll have a very skinny funnel, starting with very little awareness and consideration.  The issue is no one really knows about your brand.  What could be holding your brand back is a) concept that’s not breaking through into the marketplace b) poor execution behind the awareness driving programs or c) lack of investment behind the right strategy.  The strategic focus should be on driving Awareness and Consideration to establish your brand into the minds of consumers and in the marketplace.  Align the brand promise and the communication of that brand promise to begin gaining customers.  
  • Like It:  At the Like It stage, the funnel is fairly strong at the top but quickly narrows at purchase and has a very weak bottom part of the brand funnel.  As people see your brand as a good rational choice, they might consider it and use it, but it lacks separation from the other brands and it’s missing that emotional connection.  Brands stuck here usually focus on what they do (features) and not what the consumer wants (benefits)  In the funnel, you’ll see pretty strong awareness and consideration but you’ll lose out at the purchase stage and have no real repeat or loyalty at all.  You’ll notice fairly high trade spend just so you can keep your share going–and you use price as a weapon to close the deal.  The best strategy here is to begin to Separate Your Brand from the clutter of the market, by establishing a brand promise based on benefits–rational and emotional.  A brand like Dove was at the Like It stage back in the 1990s.  Only when they could shift from talking about themselves to talking about the consumers would they be able to establish more love for their brand.  
  • Love It:  At the Love It stage, the funnel starts to fill out, but might still have some gaps.  Your focus should be on taking the connection consumers have with your brand and drive repeat and loyalty.  Strategically, focus on ways to Tug at the Heart of your consumers so you can strengthen that connection you have.  This is where you take a little bit of love and try to become a Beloved brand.  And you should aggressively analyze any gaps on the funnel and attack them.  Also, once you start to see strength versus one of your competitors, you can start to leverage that power to squeeze them out and attack their weaknesses on the brand funnel. When Samsung started to become a Loved Brand in the TV market, they took all that power to own the in-store environment shutting out brands like LG, Sharp and Panasonic.   They shifted some spend from Awareness down to Purchase.  Samsung now is using the cell phone and very emotional programs to try to shift from a little bit of love into a Beloved Brand.  
  • Beloved Brand:  At the Beloved stage, the brand funnel should be very robust, better than any competitors.   With such strong funnel, the strategy shifts towards  Continuing the Magic with creativity in marketing programs or Innovation in the product.  The analysis here is to keep analyzing  the funnel over time and versus competitors on a regular basis and any weakness is attacked immediately before a competitor can discover and utilize.  A Beloved Brand like Special K with all their success, has decided to attack their original cereal formula to improve the taste.  

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Attack Your Gaps

I encourage brands to analyse the Leaks by looking at how the consumer might move along the brand going from Indifferent (unaware, not noticed) to Like It (interested, bought) to Love It (satisfied, repeater) and Beloved Brand for Life (Fan, outspoken).  At each stage, match up what the consumer feels about the brand as well as what the possible reasoning for why they might reject the brand.

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Brand Leaders like Sony, started to see cracks at the purchase stage as consumers started seeing just how much better Samsung when they were able to compare brands at the store level.  In fact, people hung onto the Sony brand much longer than they should have.  That’s actually a sign of the power that Beloved Brand status gives you.

Use Brand Funnels to Track and Manage the Health of Your Brand

 

To read more about how the love for a brand creates more power and profits:

 
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Brand LeadershipI run the Brand Leader Learning Center,  with programs on a variety of topics that are all designed to make better Brand Leaders.  To read more on how the Learning Center can help you as a Brand Leader click here:   Brand Leadership Learning Center

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To reach out directly, email me at graham.robertson@beloved-brands.com

About Graham Robertson: The reason why I started Beloved Brands Inc. is to help brands realize their full potential value by generating more love for the brand.   I only do two things:  1) Make Brands Better or 2) Make Brand Leaders Better.  I have a reputation as someone who can find growth where others can’t, whether that’s on a turnaround, re-positioning, new launch or a sustaining high growth.  And I love to make Brand Leaders better by sharing my knowledge.  Im a marketer at heart, who loves everything about brands.  My background includes 20 years of CPG marketing at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke.  My promise to you is that I will get your brand and your team in a better position for future growth. Add me on LinkedIn at http://www.linkedin.com/in/grahamrobertson1 so we can stay connected.