Archive for April, 2009

28
Apr

It’s not a strategy unless there’s a trick

istock_000001322719xsmallEvery competitive situation, whether love, sports, or business, calls for strategy. And most strategies involve deception. More on that later.

The word “strategy” is derived from the Greek “strategos,” meaning military leader or general. In the military and elsewhere, its definition has evolved to mean a systematic plan of action intended to achieve a desired goal. The difference between strategies and tactics is sometimes blurry, but generally strategies are planned and tactics are executed.

Often, the strategic plan involves trickery–another word for surprise attack. In sports, it’s the trick play, the fake hand-off, the juke move, the curveball, the feint, the reverse, etc., all intended to catch the opponent off-guard.

One of the principles of strategy essential for success according to The United States Army’s Field Manual of Military Operations is this one:

• Surprise (Strike the enemy at a time, at a place, or in a manner for which he is unprepared.)

Many organizations forget to develop a plan for out-maneuvering their competitors. Instead, they focus only on achieving operational excellence. Perhaps you have seen some version of this caution: “Efficiency is a consequence, not a strategy.”

Of course, tactical efficiency sometimes works, say handing off to the tailback on third and goal. The play fools no one, but if well executed it may succeed. Once. Next time, the defense will be wise to it.

Sun Tzu in the The Art of War says, “Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.” In other words, mix it up.

Is your strategic marketing plan directed toward out-maneuvering your competitors?

20
Apr

G, I don’t get Gatorade’s line extension

img_15603I am brand loyal to Gatorade. I drink it a couple of times a week during and after running workouts. It’s a staple for most runners.

But its line extension has me confused.

First of all, what happened to regular Gatorade? And what is the difference between these ill-defined options with forgettable names? Here’s the current line-up:

  • G (that’s the name) might be the original.
  • Shine On seems to be the original with vitamin C added. It is positioned for drinking prior to morning workouts. I’m not sure why.
  • Bring It has B vitamins added for “metabolizing energy.”
  • Be Tough has vitamin E, an antioxidant.
  • No Excuses seems to be Gatorade Light, a drink for those who find the taste of regular Gatorade too strong.
  • Focus has vitamin E, 25% more electrolytes, 50% less carbs, and Theanine to help focus. With Tiger Woods‘ endorsement, it’s positioned for more serious athletes.
  • G2 (that’s the name) is the low-calorie option with vitamins B, C and E.

Shine On, Be Tough, Bring It, No Excuses–these names don’t exactly convey the product differences needed when standing in the grocery aisle. Is Bring It the one with B vitamins? Or is that Be Tough? What’s the difference between G and G2 again?

To make it worse, these names just replaced some equally vague ones:

  • Shine On used to be A.M.
  • Bring It was Fierce.
  • Be Tough was called X-Factor.
  • No Excuses used to be Rain.

Both the old and new names are on each package to aid with the transition. Good luck.

So what do I want in a sports drink beyond hydration? Energy, focus, protection? Do I have to choose? Why not all?

Here’s my suggestion:

  • Keep the original and call it Gatorade. It’s like Coca-Cola Classic.
  • Make an enhanced version with all the extras: more electrolytes, vitamins, Theanine, etc. Call it Gatorade Plus or Gatorade Extra.
  • Make a lighter tasting, low-calorie version, called, of course, Gatorade Light.

I know — boring. But at least I would know which one to grab at the grocery store.

PS: Since writing this post, Beverage Digest reports Gatorade’s sales dropped 13.7% first quarter 2009. Business Week‘s brand blog Brand New Day blames the new packaging.

13
Apr

Could the Beatles go viral today?

Crowd in motion blurMy kids (now in their 20s) once confessed they are disappointed their generation did not have a Sinatra, Elvis or Rolling Stones to embrace. I feel for them.

Having our personal favorites is what makes us unique; however, there is something special about sharing an experience with a large group. Something life-affirming about occasionally dancing around the campfire with our tribe.

Die-hard fans of sports teams understand this. Kids (and their parents) who camp all night at the bookstore for the first edition of the latest Harry Potter novel know this. And I experienced it watching the Beatles on The Ed Sullivan Show in 1964.

It’s easy to find fault with the old-school star-making machinery–the major record labels, publishing houses, TV networks, movie studios, and mass media advertising. The idols were contrived; the audiences manipulated. We had little choice but to like what we were spoon-fed.

Now, consumer-generated content gives everyone a shot at stardom. Or does it?

Social media builds community, but has it yet launched a Bruce Springsteen or Eagles? A Robert De Niro or Jack Nicholson?  A Marilyn Monroe or Elizabeth Taylor? A Stephen King or JK Rowling? Do we want it to do this? Can it?

Does consumer-generated content mean the end of stadium rock and Star Trek frenzy? Is that a good thing?

07
Apr

Now’s the time to buy market share … cheap

price tag on whiteThe news focuses on the negative — and there’s a lot of it. What is perhaps being missed is that we are living in the buyers’ market of our lifetimes.

In all likelihood, nothing will ever be this cheap again.

That dreamhouse is selling for 10-25% less than it would have a couple of years ago. Mortgage rates are at a record low.

Autos dealers are selling cars for less than invoice. Gasoline is relatively cheap.

With an abundance of airline, hotel and resort deals available, it’s a great year to travel inexpensively. Condé Nast calls it “The world on sale.”

And none other than financial guru Warren Buffett says now’s the time to buy undervalued stock.

Do you know what else is on sale? Your competitions’ market share.

You steal it by aggressively marketing now.

“This is not the time to cut advertising,” says John Quelch in The Financial Times of London, February 2008, and Harvard Business, September 2008. “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”

And because advertising revenues have declined sharply, ad rates have been cut to attract spending.

“Brands with deep pockets may be able to negotiate favourable advertising rates and lock them in for several years,” Quelch says.

For brands with long-term plans, now may be the best opportunity ever to catch competitors offguard and grow market share.

01
Apr

It takes a brand to raise a village

istock_000004526499xsmall1The promise of social media is that people with a common interest can easily congregate and communicate. As more and more organizations look to social media as a tool for building brand engagement, the question is raised:

Can just any brand energize an active online community?

Sure, there are plenty of success stories among the obvious consumer brands. For example:

These are brands in popular categories — cars, food, entertainment — categories people are passionate about. And passion is a requirement of community. Social media are simply new channels for fans to gather and idolize their favorite wine, book, destination, or sports team.

Non-profit organizations are figuring this out. They have existing offline communities of volunteers, donors, and advocates who are already engaged in the cause. Providing an online forum is an obvious step. Here are a few examples:

Can any brand build online community? Can a mundane consumer product, e.g. soap, build community?

What about the industries we love to hate? The airlines, the banks, the insurance companies? Check out these approaches:

Can B2B companies use social media to inspire brand loyalty? See these examples:

Brands, by definition, inspire loyalty based on intangible distinctiveness. (See 9 Criteria for Brand Essence.) Where there is loyalty, there is community. Some brands succeed at expanding their existing offline communities via social media. Others grow their followers entirely online.

Either way, the common denominator is shared passion for the brand.




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