The Bank of Canada’s declaration that the recession is over provides an opportunity to look at your business and brand strategies with fresh eyes. One import focus: corporate social responsibility.
In tough times, businesses make decisions that emphasize short-term survival, and neglect longer-term investments that feel like “nice to do’s.” Before the economy softened, companies were increasingly making corporate social responsibility an integral part of their business and marking strategies. When money got tight, many companies cut back or shelved their plans entirely.
With positive news on the horizon, it’s time to take the CSR strategy off the back burner and ensure you’re well-positioned for growth.
Some companies will have more of an uphill battle against competitors that didn’t back off CSR. (Wal-Mart, Procter & Gamble and Coca-Cola Enterprises are notable examples of companies that increased their commitment to CSR during the recession.) But they’ll have to respond to consumers who increasingly want to deal with companies doing everything in their power to be socially and environmentally responsible.
So how can you reignite a CSR focus in ways that are meaningful and authentic? Here are some thoughts to kick-start the conversation:
START WITH PASSION
A focused CSR strategy starts from a point of passion, whether it’s because the board or senior leadership decides it’s time to use the corporate platform to lead change or the corporate communications or marketing departments see an opportunity to address negative perceptions or create a competitive advantage.
Look for a natural extension of what you do. Your CSR strategy should be tied as directly as possible to your corporate or brand mission and ultimately help differentiate your company from competitors that are doing less to meet CSR goals
PICK A FOCUS
Corporate social responsibility strategies can be narrowly focused around specific goals (say, support a charity) or be more broadly defined (for instance, sustainability or community economic development). The key is to pick something that you can own and that fits with your corporate values.
Often, larger companies, particularly when profits are good, have a hard time saying “No” to specific requests. By spreading their CSR budget around too many initiatives, they reduce their ability to play a true leadership role and effectively engage their stakeholders.
BE REALISTIC
You need to make an honest assessment of what you can directly affect (your internal operations) and what you can influence (your stakeholders and partners).
And be clear about what is not within your control so that you’re not wasting valuable resources trying to change things that you can’t. Consumers don’t expect you to change the world, but they’ll reward you if you do what you can within your sphere of influence.
LOOK INSIDE AND OUTSIDE
Companies with the smartest strategies ensure they are being fully inclusive, across their organization and into the wider world, with outside partners, stakeholders and the general public.
One smart move often overlooked is using employees to make a difference in their communities. As well, companies that are working hard to change behavior inside their organization may forget the influence they can have outside with, for example, their buying power with suppliers.
IDENTIFY EXPECTATIONS, PLANS
Too often, the heavy lifting of getting CSR initiatives off the ground is shouldered by one department. While individual or departmental passion can do a lot to drive action, it’s more effective to ensure that operational expectations and action plans are created at all levels of the company. Without strong communication and engagement, execution falls short and innovation opportunities are missed.
IT’S NOT JUST MARKETING
A CSR commitment needs to come from a genuine place. If you’re acting socially responsible purely to increase sales, consumers will call you on it. That’s not to say, however, that CSR initiatives can’t be used to complement marketing strategies.
SET MEASURES OF SUCCESS
A focus on results is needed to drive and maintain momentum. Without measurement, it’s harder to get buy-in, determine which actions have the most impact and keep all stakeholders motivated to meet long-term CSR goals.
Developing a focused corporate social responsibility strategy requires an investment of time and resources. The results, though, can often be what sets you apart from competitors, now and in the future.
Monday, August 3, 2009
Monday, July 6, 2009
Lessons in marketing courage from Cannes
as Published in the Globe and Mail (National Edition) - July 6, 2009
At this time of year, the marketing and advertising community looks to the to see what ideas, campaigns and media innovations rise to the top. In our changing media landscape, it's inspiring to see what's getting recognition.
The winning entries this year indicate that the tipping point has clearly tipped.
Among the major awards, the TV Grand Prix went to an ad that ran online, and not on TV; the Media Grand Prix went to a campaign that used a vehicle that would normally never be considered media; a public relations campaign won the Grand Prix not only for PR but also for direct marketing, for online components and interactivity; and the Titanium, or top award, along with the Integrated Grand Prix went to a political campaign.
What was it about these undeniably successful marketing efforts that made the difference? And, what lessons can we draw to leverage our marketing resources in an increasingly complex media environment?
TV Grand Prix: To Philips Electronics, Ltd. for its Carousel spot.
For the first time in history, the winner of the TV Grand Prix came from outside the traditional broadcast world: The Philips ad for the Cinema 21:9, the first TV to deliver a true movie experience, ran online.
Since the ad's April launch, it's driven more than one million visitors to Philips.com, the consumer electronics company's website.
The lesson from Cannes: It's not about the medium, it's about the message. People will only tune you in if you give them something compelling, relevant and interesting to connect with. The days of interrupting people, shouting out your message and hoping that drives action are over.
Media Grand Prix: To Nestlé, for its Kit Kat Mail product launched through Japan Post as the media channel.
In Japan's crowded packaged goods market, there are limited ways to stand out. As Japan Post privatized its postal outlets, Nestlé and JWT Tokyo, Nestle's advertising agency, worked with the postal service to co-create a brand-new product and a retail distribution channel with no competitors.
The Kit Kat Mail, intended as a good-luck greeting to students preparing for exams, was a specially designed, ready-to-send package containing the chocolate bar and space for an accompanying message.
Launched in 20,000 Japan Post outlets, it was an instant success. The launch received more than $15-million in free media coverage, and Kit Kat Mail is now permanently available through Japan Post outlets.
Jun Fukawa, executive creative director of JWT Tokyo, says "this new distribution channel is the killer combination of brand building and immediate sales growth."
The lesson here is to think beyond traditional boundaries. That comes from being brave enough to ask: "Are there bolder, more interesting ways for people to experience my brand?"
Paul Little, creative director at TBWA\Vancouver, puts it this way: "The problems haven't changed, but the solutions sure have. We live in a post-formula world and if you insist on doing what you did yesterday, you will fail.
But on the flip side, the rewards can be huge. The bold are now rewarded with success never before possible."
Grand Prix for PR, direct marketing and website and interactive: To Queensland Tourism's Best Job in the World campaign.
What was brave about this campaign was making the decision to take the entire Queensland Tourism budget and put it behind a single promotional PR idea: Hold a global contest for a job to explore and blog about islands in the Great Barrier Reef.
It attracted attention around the world and was rewarded with success because it was a big, broadly relevant idea that tapped into a strong emotional desire within the target group.
The lesson: When you have a big idea, be brave enough to put all of your eggs into that basket.
The Titanium and Integrated Grand Prix: To the 2008 U.S. presidential election.
The Barack Obama-Joe Biden campaign was a clear demonstration of creating effective connections by using all available media, particularly new social media tools.
There is obviously a different level of emotional engagement during political campaigns, particularly this one.
But the lessons from this campaign can be applied to any marketing campaign to make it more emotionally relevant.
During an interview at Cannes, David Plouffe, President Obama's campaign manager, observed: "There's nothing more valuable than a human being talking to a human being. Nothing. Particularly in a world where people are watching less mainstream media and trusting official sources less."
Despite today's uncertainty, it's comforting to know it's ultimately that simple: Marketing is about people connecting with people.
The real prize isn't winning at Cannes, it's winning the hearts and minds of your consumer and elevating the brand experience to the level where they actually welcome you into their lives.
At this time of year, the marketing and advertising community looks to the to see what ideas, campaigns and media innovations rise to the top. In our changing media landscape, it's inspiring to see what's getting recognition.
The winning entries this year indicate that the tipping point has clearly tipped.
Among the major awards, the TV Grand Prix went to an ad that ran online, and not on TV; the Media Grand Prix went to a campaign that used a vehicle that would normally never be considered media; a public relations campaign won the Grand Prix not only for PR but also for direct marketing, for online components and interactivity; and the Titanium, or top award, along with the Integrated Grand Prix went to a political campaign.
What was it about these undeniably successful marketing efforts that made the difference? And, what lessons can we draw to leverage our marketing resources in an increasingly complex media environment?
TV Grand Prix: To Philips Electronics, Ltd. for its Carousel spot.
For the first time in history, the winner of the TV Grand Prix came from outside the traditional broadcast world: The Philips ad for the Cinema 21:9, the first TV to deliver a true movie experience, ran online.
Since the ad's April launch, it's driven more than one million visitors to Philips.com, the consumer electronics company's website.
The lesson from Cannes: It's not about the medium, it's about the message. People will only tune you in if you give them something compelling, relevant and interesting to connect with. The days of interrupting people, shouting out your message and hoping that drives action are over.
Media Grand Prix: To Nestlé, for its Kit Kat Mail product launched through Japan Post as the media channel.
In Japan's crowded packaged goods market, there are limited ways to stand out. As Japan Post privatized its postal outlets, Nestlé and JWT Tokyo, Nestle's advertising agency, worked with the postal service to co-create a brand-new product and a retail distribution channel with no competitors.
The Kit Kat Mail, intended as a good-luck greeting to students preparing for exams, was a specially designed, ready-to-send package containing the chocolate bar and space for an accompanying message.
Launched in 20,000 Japan Post outlets, it was an instant success. The launch received more than $15-million in free media coverage, and Kit Kat Mail is now permanently available through Japan Post outlets.
Jun Fukawa, executive creative director of JWT Tokyo, says "this new distribution channel is the killer combination of brand building and immediate sales growth."
The lesson here is to think beyond traditional boundaries. That comes from being brave enough to ask: "Are there bolder, more interesting ways for people to experience my brand?"
Paul Little, creative director at TBWA\Vancouver, puts it this way: "The problems haven't changed, but the solutions sure have. We live in a post-formula world and if you insist on doing what you did yesterday, you will fail.
But on the flip side, the rewards can be huge. The bold are now rewarded with success never before possible."
Grand Prix for PR, direct marketing and website and interactive: To Queensland Tourism's Best Job in the World campaign.
What was brave about this campaign was making the decision to take the entire Queensland Tourism budget and put it behind a single promotional PR idea: Hold a global contest for a job to explore and blog about islands in the Great Barrier Reef.
It attracted attention around the world and was rewarded with success because it was a big, broadly relevant idea that tapped into a strong emotional desire within the target group.
The lesson: When you have a big idea, be brave enough to put all of your eggs into that basket.
The Titanium and Integrated Grand Prix: To the 2008 U.S. presidential election.
The Barack Obama-Joe Biden campaign was a clear demonstration of creating effective connections by using all available media, particularly new social media tools.
There is obviously a different level of emotional engagement during political campaigns, particularly this one.
But the lessons from this campaign can be applied to any marketing campaign to make it more emotionally relevant.
During an interview at Cannes, David Plouffe, President Obama's campaign manager, observed: "There's nothing more valuable than a human being talking to a human being. Nothing. Particularly in a world where people are watching less mainstream media and trusting official sources less."
Despite today's uncertainty, it's comforting to know it's ultimately that simple: Marketing is about people connecting with people.
The real prize isn't winning at Cannes, it's winning the hearts and minds of your consumer and elevating the brand experience to the level where they actually welcome you into their lives.
Monday, June 8, 2009
In these times, creativity may be your most inspired tool
as Published in the Globe and Mail (National Edition) - June 8, 2009
As we absorb the news of General Motors Corp. declaring Chapter 11 bankruptcy protection, and reflect on the significant changes that other iconic businesses and brands are undergoing, it's worth thinking about what tools we have in our arsenal to thrive in these rapidly changing times. In reflecting on businesses that are weathering the storm, it's apparent that one of those tools is creativity.
The need for creative thinking is illustrated in a quote from Procter & Gamble Co. chairman and chief executive officer A.G. Lafley: "We need to reinvent the way we market to consumers. We need a new model. It does not exist. No one else has one yet. But we need to get going now."
In today's commodified markets, creativity is a key differentiator. Creativity allows you to create change in your favour, thereby creating a larger share of the future for your business.
Creativity is a mental and social process involving the generation of new ideas or concepts. Creativity is fuelled by the process of either conscious or unconscious insight.
While challenging the status quo is a natural state for some, most of us need a little help. The following are some examples of how you can inspire creativity in your business:
FOCUS: WHAT SETS YOU APART
To be truly creative, you need to understand the essence of what sets you apart, and leverage it at every point of connection your business has with its customers, suppliers and partners.
Creativity comes from looking for ways to reinforce what your brand and business is about - from how you answer the phone to how you send out invoices.
"A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures," former Walt Disney Co. CEO Michael Eisner has been quoted as saying.
Footwear maker Timberland Co. showcases its brand values on its shoeboxes, enhancing the brand experience by talking about the environmental and community impact of the specific shoe you're buying. What Timberland did was borrow from food packaging, creating a way of talking about its values that feels fresh and new on the side of a shoebox.
ENCOURAGE SPONTANEITY
Adding a little spontaneity in your strategy allows you to focus on what it takes to be relevant. Culture changes in real time and, if you don't keep up, your product and business can look awkward and out of step.
Burger King Corp.'s Facebook promotion (lose 10 friends and get a free Whopper) capitalized on a reality that many Facebook users' online friends were not necessarily their "true" friends. By using that insight as a basis for its promotion, Burger King earned kudos and business for understanding and effectively connecting with its consumers.
SMALL BUDGET'S NO BARRIER
When faced with tight budgets, it pays to think beyond traditional approaches. Tourism Queensland's recent "Best Job in the World" promotion is a great example of budget leverage. It created a global contest for a job paying $150,000 Australian ($132,000 Canadian) to explore and blog about islands in the Great Barrier Reef. It bet its entire marketing budget on a creative new way to reach people, and reaped huge rewards worldwide in buzz and public relations (millions of Web hits and almost 35,000 entries from more than 200 countries).
FIND INSPIRATION OUTSIDE
By working with suppliers and leveraging non-traditional partnerships, you can inspire new thought. P&G, whose push for innovation was described in Mr. Lafley's book The Game-Changer, has a mandate to find at least half of its new ideas from outside the company.
A non-traditional partnership example is one between toothpaste maker Crest and car rental company Avis. When airports changed their carry-on allowances for liquids and creams, it resulted in a lot of traveller frustration. Crest capitalized on this by working with Avis to create "comfort packs" with travel necessities that were left in Avis cars rented at the airport.
BE BOLD
Original ideas come from not fearing failure. Internal cultures have to cultivate the permission to bring forward new thinking without fear. This requires support from the most senior levels of management, as well as processes that encourage contribution from a broad range of sources. Creating a safety net for creative risk-taking allows you to push further for new ideas.
Apple Inc. is a model for this. Throughout the years, its push for new frontiers has had brilliant successes (the iPod), but not without experiencing failure as well (the Newton).
Bringing more creativity into your business's DNA requires an active commitment, particularly from the top. The rewards, in today's economy where every tool in the toolkit needs to be leveraged, are well worth the effort.
As we absorb the news of General Motors Corp. declaring Chapter 11 bankruptcy protection, and reflect on the significant changes that other iconic businesses and brands are undergoing, it's worth thinking about what tools we have in our arsenal to thrive in these rapidly changing times. In reflecting on businesses that are weathering the storm, it's apparent that one of those tools is creativity.
The need for creative thinking is illustrated in a quote from Procter & Gamble Co. chairman and chief executive officer A.G. Lafley: "We need to reinvent the way we market to consumers. We need a new model. It does not exist. No one else has one yet. But we need to get going now."
In today's commodified markets, creativity is a key differentiator. Creativity allows you to create change in your favour, thereby creating a larger share of the future for your business.
Creativity is a mental and social process involving the generation of new ideas or concepts. Creativity is fuelled by the process of either conscious or unconscious insight.
While challenging the status quo is a natural state for some, most of us need a little help. The following are some examples of how you can inspire creativity in your business:
FOCUS: WHAT SETS YOU APART
To be truly creative, you need to understand the essence of what sets you apart, and leverage it at every point of connection your business has with its customers, suppliers and partners.
Creativity comes from looking for ways to reinforce what your brand and business is about - from how you answer the phone to how you send out invoices.
"A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures," former Walt Disney Co. CEO Michael Eisner has been quoted as saying.
Footwear maker Timberland Co. showcases its brand values on its shoeboxes, enhancing the brand experience by talking about the environmental and community impact of the specific shoe you're buying. What Timberland did was borrow from food packaging, creating a way of talking about its values that feels fresh and new on the side of a shoebox.
ENCOURAGE SPONTANEITY
Adding a little spontaneity in your strategy allows you to focus on what it takes to be relevant. Culture changes in real time and, if you don't keep up, your product and business can look awkward and out of step.
Burger King Corp.'s Facebook promotion (lose 10 friends and get a free Whopper) capitalized on a reality that many Facebook users' online friends were not necessarily their "true" friends. By using that insight as a basis for its promotion, Burger King earned kudos and business for understanding and effectively connecting with its consumers.
SMALL BUDGET'S NO BARRIER
When faced with tight budgets, it pays to think beyond traditional approaches. Tourism Queensland's recent "Best Job in the World" promotion is a great example of budget leverage. It created a global contest for a job paying $150,000 Australian ($132,000 Canadian) to explore and blog about islands in the Great Barrier Reef. It bet its entire marketing budget on a creative new way to reach people, and reaped huge rewards worldwide in buzz and public relations (millions of Web hits and almost 35,000 entries from more than 200 countries).
FIND INSPIRATION OUTSIDE
By working with suppliers and leveraging non-traditional partnerships, you can inspire new thought. P&G, whose push for innovation was described in Mr. Lafley's book The Game-Changer, has a mandate to find at least half of its new ideas from outside the company.
A non-traditional partnership example is one between toothpaste maker Crest and car rental company Avis. When airports changed their carry-on allowances for liquids and creams, it resulted in a lot of traveller frustration. Crest capitalized on this by working with Avis to create "comfort packs" with travel necessities that were left in Avis cars rented at the airport.
BE BOLD
Original ideas come from not fearing failure. Internal cultures have to cultivate the permission to bring forward new thinking without fear. This requires support from the most senior levels of management, as well as processes that encourage contribution from a broad range of sources. Creating a safety net for creative risk-taking allows you to push further for new ideas.
Apple Inc. is a model for this. Throughout the years, its push for new frontiers has had brilliant successes (the iPod), but not without experiencing failure as well (the Newton).
Bringing more creativity into your business's DNA requires an active commitment, particularly from the top. The rewards, in today's economy where every tool in the toolkit needs to be leveraged, are well worth the effort.
Monday, April 13, 2009
Even in a recession, it's worth being green
as Published in the Globe and Mail (National Edition) - April 13, 2009
Given the mood of the times, consumers are changing their habits and redefining how they evaluate the value of the products they purchase. Whether the goal is to cut the household budget, hunt for bargains or contribute to a greener world, people are thinking harder about where they spend their money: choosing lasting over fleeting, and meaningful over frivolous.
The old culture of style over substance is giving way to one where the watchword is value. Consumers want to feel they are, as well as are seen to be, making smart choices in these uncertain times.
The impact of this heightened importance on value is that consumers are increasingly making tradeoffs. In the past, they might have taken the expensive trip and bought the new car. Now, they want to avoid taking on the extra debt, which means making the hard choices. The implication for marketers is that you now have to compete for a smaller overall consumer wallet. One of the most obvious signals of the changing times is the decrease in global tourism. Even those still well-off financially are shying away from high-end travel for fear of looking out of step with the times. But there is a silver lining here: People are choosing to spend their personal "escape time" and entertainment dollars locally.
The potential benefits for marketers do not apply only to local travel and entertainment alternatives; people are also looking at a wide variety of new ways to treat themselves in lieu of extravagant luxuries. The brands in highest demand are those that deliver the best economic or emotional value. For example, lipstick sales are up — it's an inexpensive indulgence. A local optometrist reports that customers are spending more than usual on stylish glasses to make themselves feel better. Movie theatre ticket sales have reversed their downward decline, and are up a surprising 17.5 per cent, as people look for an inexpensive way to forget their troubles.
A few tips for delivering value in the current environment:
Understand your competitive context.
To ensure your brand is perceived as delivering value, it's important to understand how consumer behaviour is shifting. Before, the competitive context for lipsticks was other cosmetics; now it's "things I buy to make myself feel better."
Offer consumers new ways to experience your product.
One aspect driving the increased cinema box office is giving customers more entertainment value for the same price. The growth of Imax and 3D films (such as Hannah Montana/Miley Cyrus: Best of Both Worlds and Jonas Brothers: The 3D Concert Experience) offer exciting, but less expensive, ways to keep the kids entertained.
Tap into the best-kept secrets of local community.
As consumers stay closer to home, they need to look more closely at what is available in their own backyard. With the increased functionality of the iPhone and BlackBerry, people have new tools to seek out intriguing local options. Location-based services allow marketers to inform consumers about specific and relevant offerings in a more immediate and direct way.
Shift from owning to using.
How many hours a year do people actually use their power tools or power washers? Savvy marketers are creating businesses built around the shift from owning to using, as people realize that they can get the full value of a product without shelling out the full purchase price. An example is companies such as Zipcar or Vancouver's Co-operative Auto Network, which let people share vehicles and pay only when they actually use them. Beyond the value benefit, selling shared ownership also gives marketers a green story to tell.
Tap into the power of local stories.
Another aspect of value for consumers is helping them understand more about where and how the products they purchase are made. And example is the fast-growing Good Earth Cooking School in the Niagara Valley. It sees its success as a direct result of offering customers an experience tied to the region where the owner grew up; she knows how the land has been cared for, provides the best in local ingredients, and freely shares her own story with people. Building on local stories also helps people feel that they are giving their "neighbours," rather than strangers, a helping hand in a tough economy.
As economic factors continue to shift, you can't sit on the sidelines as a marketer. Take the time to understand the context in which your brand competes, and look for smart opportunities that add value to your brand story.
Given the mood of the times, consumers are changing their habits and redefining how they evaluate the value of the products they purchase. Whether the goal is to cut the household budget, hunt for bargains or contribute to a greener world, people are thinking harder about where they spend their money: choosing lasting over fleeting, and meaningful over frivolous.
The old culture of style over substance is giving way to one where the watchword is value. Consumers want to feel they are, as well as are seen to be, making smart choices in these uncertain times.
The impact of this heightened importance on value is that consumers are increasingly making tradeoffs. In the past, they might have taken the expensive trip and bought the new car. Now, they want to avoid taking on the extra debt, which means making the hard choices. The implication for marketers is that you now have to compete for a smaller overall consumer wallet. One of the most obvious signals of the changing times is the decrease in global tourism. Even those still well-off financially are shying away from high-end travel for fear of looking out of step with the times. But there is a silver lining here: People are choosing to spend their personal "escape time" and entertainment dollars locally.
The potential benefits for marketers do not apply only to local travel and entertainment alternatives; people are also looking at a wide variety of new ways to treat themselves in lieu of extravagant luxuries. The brands in highest demand are those that deliver the best economic or emotional value. For example, lipstick sales are up — it's an inexpensive indulgence. A local optometrist reports that customers are spending more than usual on stylish glasses to make themselves feel better. Movie theatre ticket sales have reversed their downward decline, and are up a surprising 17.5 per cent, as people look for an inexpensive way to forget their troubles.
A few tips for delivering value in the current environment:
Understand your competitive context.
To ensure your brand is perceived as delivering value, it's important to understand how consumer behaviour is shifting. Before, the competitive context for lipsticks was other cosmetics; now it's "things I buy to make myself feel better."
Offer consumers new ways to experience your product.
One aspect driving the increased cinema box office is giving customers more entertainment value for the same price. The growth of Imax and 3D films (such as Hannah Montana/Miley Cyrus: Best of Both Worlds and Jonas Brothers: The 3D Concert Experience) offer exciting, but less expensive, ways to keep the kids entertained.
Tap into the best-kept secrets of local community.
As consumers stay closer to home, they need to look more closely at what is available in their own backyard. With the increased functionality of the iPhone and BlackBerry, people have new tools to seek out intriguing local options. Location-based services allow marketers to inform consumers about specific and relevant offerings in a more immediate and direct way.
Shift from owning to using.
How many hours a year do people actually use their power tools or power washers? Savvy marketers are creating businesses built around the shift from owning to using, as people realize that they can get the full value of a product without shelling out the full purchase price. An example is companies such as Zipcar or Vancouver's Co-operative Auto Network, which let people share vehicles and pay only when they actually use them. Beyond the value benefit, selling shared ownership also gives marketers a green story to tell.
Tap into the power of local stories.
Another aspect of value for consumers is helping them understand more about where and how the products they purchase are made. And example is the fast-growing Good Earth Cooking School in the Niagara Valley. It sees its success as a direct result of offering customers an experience tied to the region where the owner grew up; she knows how the land has been cared for, provides the best in local ingredients, and freely shares her own story with people. Building on local stories also helps people feel that they are giving their "neighbours," rather than strangers, a helping hand in a tough economy.
As economic factors continue to shift, you can't sit on the sidelines as a marketer. Take the time to understand the context in which your brand competes, and look for smart opportunities that add value to your brand story.
Monday, March 16, 2009
The value of value is the new consumer angle
as Published in the Globe and Mail (National Edition) - March 16, 2009
Given the mood of the times, consumers are changing their habits and redefining how they evaluate the value of the products they purchase. Whether the goal is to cut the household budget, hunt for bargains or contribute to a greener world, people are thinking harder about where they spend their money: choosing lasting over fleeting, and meaningful over frivolous.
The old culture of style over substance is giving way to one where the watchword is value. Consumers want to feel they are, as well as are seen to be, making smart choices in these uncertain times.
The impact of this heightened importance on value is that consumers are increasingly making tradeoffs. In the past, they might have taken the expensive trip and bought the new car. Now, they want to avoid taking on the extra debt, which means making the hard choices. The implication for marketers is that you now have to compete for a smaller overall consumer wallet. One of the most obvious signals of the changing times is the decrease in global tourism. Even those still well-off financially are shying away from high-end travel for fear of looking out of step with the times. But there is a silver lining here: People are choosing to spend their personal "escape time" and entertainment dollars locally.
The potential benefits for marketers do not apply only to local travel and entertainment alternatives; people are also looking at a wide variety of new ways to treat themselves in lieu of extravagant luxuries. The brands in highest demand are those that deliver the best economic or emotional value. For example, lipstick sales are up — it's an inexpensive indulgence. A local optometrist reports that customers are spending more than usual on stylish glasses to make themselves feel better. Movie theatre ticket sales have reversed their downward decline, and are up a surprising 17.5 per cent, as people look for an inexpensive way to forget their troubles.
A few tips for delivering value in the current environment:
Understand your competitive context.
To ensure your brand is perceived as delivering value, it's important to understand how consumer behaviour is shifting. Before, the competitive context for lipsticks was other cosmetics; now it's "things I buy to make myself feel better."
Offer consumers new ways to experience your product.
One aspect driving the increased cinema box office is giving customers more entertainment value for the same price. The growth of Imax and 3D films (such as Hannah Montana/Miley Cyrus: Best of Both Worlds and Jonas Brothers: The 3D Concert Experience) offer exciting, but less expensive, ways to keep the kids entertained.
Tap into the best-kept secrets of local community.
As consumers stay closer to home, they need to look more closely at what is available in their own backyard. With the increased functionality of the iPhone and BlackBerry, people have new tools to seek out intriguing local options. Location-based services allow marketers to inform consumers about specific and relevant offerings in a more immediate and direct way.
Shift from owning to using.
How many hours a year do people actually use their power tools or power washers? Savvy marketers are creating businesses built around the shift from owning to using, as people realize that they can get the full value of a product without shelling out the full purchase price. An example is companies such as Zipcar or Vancouver's Co-operative Auto Network, which let people share vehicles and pay only when they actually use them. Beyond the value benefit, selling shared ownership also gives marketers a green story to tell.
Tap into the power of local stories.
Another aspect of value for consumers is helping them understand more about where and how the products they purchase are made. And example is the fast-growing Good Earth Cooking School in the Niagara Valley. It sees its success as a direct result of offering customers an experience tied to the region where the owner grew up; she knows how the land has been cared for, provides the best in local ingredients, and freely shares her own story with people. Building on local stories also helps people feel that they are giving their "neighbours," rather than strangers, a helping hand in a tough economy.
As economic factors continue to shift, you can't sit on the sidelines as a marketer. Take the time to understand the context in which your brand competes, and look for smart opportunities that add value to your brand story.
Given the mood of the times, consumers are changing their habits and redefining how they evaluate the value of the products they purchase. Whether the goal is to cut the household budget, hunt for bargains or contribute to a greener world, people are thinking harder about where they spend their money: choosing lasting over fleeting, and meaningful over frivolous.
The old culture of style over substance is giving way to one where the watchword is value. Consumers want to feel they are, as well as are seen to be, making smart choices in these uncertain times.
The impact of this heightened importance on value is that consumers are increasingly making tradeoffs. In the past, they might have taken the expensive trip and bought the new car. Now, they want to avoid taking on the extra debt, which means making the hard choices. The implication for marketers is that you now have to compete for a smaller overall consumer wallet. One of the most obvious signals of the changing times is the decrease in global tourism. Even those still well-off financially are shying away from high-end travel for fear of looking out of step with the times. But there is a silver lining here: People are choosing to spend their personal "escape time" and entertainment dollars locally.
The potential benefits for marketers do not apply only to local travel and entertainment alternatives; people are also looking at a wide variety of new ways to treat themselves in lieu of extravagant luxuries. The brands in highest demand are those that deliver the best economic or emotional value. For example, lipstick sales are up — it's an inexpensive indulgence. A local optometrist reports that customers are spending more than usual on stylish glasses to make themselves feel better. Movie theatre ticket sales have reversed their downward decline, and are up a surprising 17.5 per cent, as people look for an inexpensive way to forget their troubles.
A few tips for delivering value in the current environment:
Understand your competitive context.
To ensure your brand is perceived as delivering value, it's important to understand how consumer behaviour is shifting. Before, the competitive context for lipsticks was other cosmetics; now it's "things I buy to make myself feel better."
Offer consumers new ways to experience your product.
One aspect driving the increased cinema box office is giving customers more entertainment value for the same price. The growth of Imax and 3D films (such as Hannah Montana/Miley Cyrus: Best of Both Worlds and Jonas Brothers: The 3D Concert Experience) offer exciting, but less expensive, ways to keep the kids entertained.
Tap into the best-kept secrets of local community.
As consumers stay closer to home, they need to look more closely at what is available in their own backyard. With the increased functionality of the iPhone and BlackBerry, people have new tools to seek out intriguing local options. Location-based services allow marketers to inform consumers about specific and relevant offerings in a more immediate and direct way.
Shift from owning to using.
How many hours a year do people actually use their power tools or power washers? Savvy marketers are creating businesses built around the shift from owning to using, as people realize that they can get the full value of a product without shelling out the full purchase price. An example is companies such as Zipcar or Vancouver's Co-operative Auto Network, which let people share vehicles and pay only when they actually use them. Beyond the value benefit, selling shared ownership also gives marketers a green story to tell.
Tap into the power of local stories.
Another aspect of value for consumers is helping them understand more about where and how the products they purchase are made. And example is the fast-growing Good Earth Cooking School in the Niagara Valley. It sees its success as a direct result of offering customers an experience tied to the region where the owner grew up; she knows how the land has been cared for, provides the best in local ingredients, and freely shares her own story with people. Building on local stories also helps people feel that they are giving their "neighbours," rather than strangers, a helping hand in a tough economy.
As economic factors continue to shift, you can't sit on the sidelines as a marketer. Take the time to understand the context in which your brand competes, and look for smart opportunities that add value to your brand story.
Monday, February 16, 2009
Tough times need tough thinking from not-for-profits
as Published in the Globe and Mail (National Edition) - February 16, 2009
While businesses are feeling new pressures with recent market shifts, those pressures are even more acute for not-for-profits. Many corporate donors have had to shift away from, or limit, charitable contributions due to business pressures.
At the same time, private donors are cutting back because they have seen their personal net worth dramatically eroded – and many are unsure of what the future holds for their earnings potential. Endowments that have provided operational and capital funding may also become less reliable, as many have seen significant drops in value or in earnings. All of these funding uncertainties come at a time when many not-for-profits are seeing increased demand for their services.
Tougher times put increased pressure on any organization; they highlight weaknesses and require you to rely on strengths. Now, more than ever, you have to have your fundamentals right to survive and thrive – so that you can take advantage of some of the opportunities that tougher times bring.
Get real
With the notable exception of Barack Obama – hope is not a strategy. What's required is a hard look at reality, including a tight, conservative review of funding sources. What are the impacts on endowments? Which donors are cancelling or delaying commitments? Can you count on the same attendance at fundraising events at the same price points as in the past? A realistic assessment will allow you to adjust your plan while you still have room to move.
Focus and Edit
It's always tempting to add projects. But now, more than ever, is really the time to ensure that you're looking at the market, not just your mission. Given pressure on staff, volunteers, board members and donors, absolute clarity around what you are trying to achieve is needed.
A recent Harvard Business Review article titled “Delivering on the promise of non-profits” showcased an interesting example of the power of focus.
The article talked about the Rheedlen Foundation, whose mission was to improve the lives of poor children in America's most devastated communities. The organization had limited success until it zeroed in on exactly what it wanted to achieve: helping 3,000 Harlem children under the age of 18 reach the same standards as children in middle-class communities. The Rheedlen Foundation changed its name to “Harlem Children's Zone,” cut out activities that didn't serve its focused goal, measured performance and achieved unprecedented results.
Get a grip on costs
Don't play down the importance of overhead. Many not-for-profits underinvest in administrative and marketing activities that are essential to support service delivery. Others underreport their spending. Either way, failing to identify the true cost of delivering services will ultimately hurt the organization. With actual costs in hand, not-for-profits are equipped to make tradeoffs and focus on areas that deliver the greatest impact.
Leverage the values shift
As times get tougher, we're seeing a shift toward more fundamental values, such as the importance of family, community and looking out for each other. This creates an opportunity for not-for-profits to create a greater grassroots connection. For BC Children's Hospital's major capital campaign, this has meant shifting from a focus on major donors to include social media tools that drive grassroots awareness.
Differentiate yourself
Think about what makes you different, focus on your core competencies, be sensitive to the challenges that your corporate and individual donors are facing and get specific about what donor dollars deliver. Donor are demanding more accountability – they need to feel that every dollar they give matters.
Play nicely with others
Use this time as an opportunity to connect with other not-for-profits that may serve a similar market. Are there synergies you can achieve by working together? Overhead you can share? Can you create a donor program that benefits both of you?
Think like a business
Now is the time to ensure your mission has a market. Which specific results are you holding yourself accountable for; what's the true cost of achieving those results and how can you focus the organization to achieve them?
Be Countertrend
Take a page from Procter & Gamble Co. – in good times, the company looks for slow, steady growth. In tough times, they take advantage of market chaos and overinvest to gain ground with consumers.
Yes, what's happened has thrown us all a giant curve ball. But this can actually be exciting – it forces you to revisit your assumptions. Addressing the disruption actually frees you to think and act creatively – which ultimately helps you better understand your own true potential.
While businesses are feeling new pressures with recent market shifts, those pressures are even more acute for not-for-profits. Many corporate donors have had to shift away from, or limit, charitable contributions due to business pressures.
At the same time, private donors are cutting back because they have seen their personal net worth dramatically eroded – and many are unsure of what the future holds for their earnings potential. Endowments that have provided operational and capital funding may also become less reliable, as many have seen significant drops in value or in earnings. All of these funding uncertainties come at a time when many not-for-profits are seeing increased demand for their services.
Tougher times put increased pressure on any organization; they highlight weaknesses and require you to rely on strengths. Now, more than ever, you have to have your fundamentals right to survive and thrive – so that you can take advantage of some of the opportunities that tougher times bring.
Get real
With the notable exception of Barack Obama – hope is not a strategy. What's required is a hard look at reality, including a tight, conservative review of funding sources. What are the impacts on endowments? Which donors are cancelling or delaying commitments? Can you count on the same attendance at fundraising events at the same price points as in the past? A realistic assessment will allow you to adjust your plan while you still have room to move.
Focus and Edit
It's always tempting to add projects. But now, more than ever, is really the time to ensure that you're looking at the market, not just your mission. Given pressure on staff, volunteers, board members and donors, absolute clarity around what you are trying to achieve is needed.
A recent Harvard Business Review article titled “Delivering on the promise of non-profits” showcased an interesting example of the power of focus.
The article talked about the Rheedlen Foundation, whose mission was to improve the lives of poor children in America's most devastated communities. The organization had limited success until it zeroed in on exactly what it wanted to achieve: helping 3,000 Harlem children under the age of 18 reach the same standards as children in middle-class communities. The Rheedlen Foundation changed its name to “Harlem Children's Zone,” cut out activities that didn't serve its focused goal, measured performance and achieved unprecedented results.
Get a grip on costs
Don't play down the importance of overhead. Many not-for-profits underinvest in administrative and marketing activities that are essential to support service delivery. Others underreport their spending. Either way, failing to identify the true cost of delivering services will ultimately hurt the organization. With actual costs in hand, not-for-profits are equipped to make tradeoffs and focus on areas that deliver the greatest impact.
Leverage the values shift
As times get tougher, we're seeing a shift toward more fundamental values, such as the importance of family, community and looking out for each other. This creates an opportunity for not-for-profits to create a greater grassroots connection. For BC Children's Hospital's major capital campaign, this has meant shifting from a focus on major donors to include social media tools that drive grassroots awareness.
Differentiate yourself
Think about what makes you different, focus on your core competencies, be sensitive to the challenges that your corporate and individual donors are facing and get specific about what donor dollars deliver. Donor are demanding more accountability – they need to feel that every dollar they give matters.
Play nicely with others
Use this time as an opportunity to connect with other not-for-profits that may serve a similar market. Are there synergies you can achieve by working together? Overhead you can share? Can you create a donor program that benefits both of you?
Think like a business
Now is the time to ensure your mission has a market. Which specific results are you holding yourself accountable for; what's the true cost of achieving those results and how can you focus the organization to achieve them?
Be Countertrend
Take a page from Procter & Gamble Co. – in good times, the company looks for slow, steady growth. In tough times, they take advantage of market chaos and overinvest to gain ground with consumers.
Yes, what's happened has thrown us all a giant curve ball. But this can actually be exciting – it forces you to revisit your assumptions. Addressing the disruption actually frees you to think and act creatively – which ultimately helps you better understand your own true potential.
Monday, December 8, 2008
Difficult times? Be sure to ask the difficult questions
as Published in the Globe and Mail (National Edition) - December 8, 2008
With the United States now in recession and Canadian consumer confidence badly shaken, it's not surprising that many marketers are worried - particularly retailers who count on the holiday season to make their annual numbers. Do you rely on traditional tactics, such as discounting and special promotions, to pull in the bargain hunters this year? Or do you need to do something more drastic to attract skittish shoppers? Some companies are resorting to price cuts so deep that they are damaging the perceived value of their products. Others are abandoning their marketing plans and disappearing from consumers' sight altogether - leaving the field wide open to their competitors. But the good news is that many marketers are not only finding creative ways to connect with consumers during these tough times, they are strengthening their brands by doing so. One strategy is to keep the marketing messages in tune with the mood of the times, particularly as society shifts from gleeful spending to belt-tightening and reflection. These marketers recognize both the need and the opportunity to connect with consumers in an honest and meaningful way, to boost spirits and relieve some stress. Here are some tips from some of the organizations that are leading the way.
Address peoples' concerns
This is not a time for either platitudes or avoidance. People want to know where they stand - particularly when it comes to their money. Vancouver City Savings Credit Union is keenly aware of peoples' concerns about global economic volatility and the financial sector's stability, and decided to address those concerns head-on. In a confident, headline-driven campaign produced by TBWA just over a month ago, Vancity actively offers reassurance to members, helping them understand that it "is not Wall Street." By showing confidence and differentiating itself from the big banks, Canada's largest credit union has been able to provide a sense of calm in the midst of turbulence.
Slow time, productive time.
How many times have busy executives complained that they don't have time for the strategic planning or market research that would expand their business? If this strikes a familiar chord with you, now might be the time to break free of this Catch-22. Use this slow time to explore new market opportunities and invest in your own future. Alternatively, invest in someone else's future. Builders Without Borders, a charitable group in Vancouver that provides project management expertise, has taken advantage of slowing construction to do something significant for the city's homeless population. It is now relying on volunteer architects, engineers and other industry professionals to help complete construction of an innovative housing project - one it hopes will become a template for other projects and offer hope to many. Attracting skilled volunteers is nearly impossible in boom times when resources are stretched thin; now, people have a little more time available to give back.
Connect in new ways
Using the opposite of high-pressure sales tactics, Teen Vogue magazine is opening a stress-free outlet in a New Jersey mall where it is impossible to buy anything. Teen Vogue's "Haute Spot" attracts teenage girls to come to enjoy free smoothies, gift-wrapping, and styling advice - all while playing with and learning about the products of the 20 participating Teen Vogue advertisers.
We could use some cheer
The holiday season is a critical time for retailers to build the bottom line - but also a great time to reinforce a brand. In keeping with its nostalgic history, R.H. Macy & Co. Inc. has launched its "Million Reasons to Believe" campaign with the goal of raising spirits as well as money for charity. The New York-based department store has created "Believe Stations" for children to write letters to Santa, donating a dollar to charity for every letter deposited in-store and filling valuable floor space with holiday cheer - enough to make you believe in Santa all over again. Starbucks Corp. is also offering consumers an easy way to give. For each Starbucks "red" beverage purchased until Jan. 2, the Seattle-based coffee chain will donate 5 cents to help fight AIDS in Africa. People can connect with other contributors through an online community and even track contributions through an "impact calculator."
Stay calm and focused
To borrow from Rudyard Kipling: "If you can keep your head when all about you are losing theirs ... Yours is the Earth and everything that's in it." Great brands have been born in recessionary times, including FedEx Corp. (1973), CNN (1980) and USA Today (1982). If you have something great to offer, if you believe in your brand, and if you're willing to support it, you don't have to wait for sunny skies to be successful.
With the United States now in recession and Canadian consumer confidence badly shaken, it's not surprising that many marketers are worried - particularly retailers who count on the holiday season to make their annual numbers. Do you rely on traditional tactics, such as discounting and special promotions, to pull in the bargain hunters this year? Or do you need to do something more drastic to attract skittish shoppers? Some companies are resorting to price cuts so deep that they are damaging the perceived value of their products. Others are abandoning their marketing plans and disappearing from consumers' sight altogether - leaving the field wide open to their competitors. But the good news is that many marketers are not only finding creative ways to connect with consumers during these tough times, they are strengthening their brands by doing so. One strategy is to keep the marketing messages in tune with the mood of the times, particularly as society shifts from gleeful spending to belt-tightening and reflection. These marketers recognize both the need and the opportunity to connect with consumers in an honest and meaningful way, to boost spirits and relieve some stress. Here are some tips from some of the organizations that are leading the way.
Address peoples' concerns
This is not a time for either platitudes or avoidance. People want to know where they stand - particularly when it comes to their money. Vancouver City Savings Credit Union is keenly aware of peoples' concerns about global economic volatility and the financial sector's stability, and decided to address those concerns head-on. In a confident, headline-driven campaign produced by TBWA just over a month ago, Vancity actively offers reassurance to members, helping them understand that it "is not Wall Street." By showing confidence and differentiating itself from the big banks, Canada's largest credit union has been able to provide a sense of calm in the midst of turbulence.
Slow time, productive time.
How many times have busy executives complained that they don't have time for the strategic planning or market research that would expand their business? If this strikes a familiar chord with you, now might be the time to break free of this Catch-22. Use this slow time to explore new market opportunities and invest in your own future. Alternatively, invest in someone else's future. Builders Without Borders, a charitable group in Vancouver that provides project management expertise, has taken advantage of slowing construction to do something significant for the city's homeless population. It is now relying on volunteer architects, engineers and other industry professionals to help complete construction of an innovative housing project - one it hopes will become a template for other projects and offer hope to many. Attracting skilled volunteers is nearly impossible in boom times when resources are stretched thin; now, people have a little more time available to give back.
Connect in new ways
Using the opposite of high-pressure sales tactics, Teen Vogue magazine is opening a stress-free outlet in a New Jersey mall where it is impossible to buy anything. Teen Vogue's "Haute Spot" attracts teenage girls to come to enjoy free smoothies, gift-wrapping, and styling advice - all while playing with and learning about the products of the 20 participating Teen Vogue advertisers.
We could use some cheer
The holiday season is a critical time for retailers to build the bottom line - but also a great time to reinforce a brand. In keeping with its nostalgic history, R.H. Macy & Co. Inc. has launched its "Million Reasons to Believe" campaign with the goal of raising spirits as well as money for charity. The New York-based department store has created "Believe Stations" for children to write letters to Santa, donating a dollar to charity for every letter deposited in-store and filling valuable floor space with holiday cheer - enough to make you believe in Santa all over again. Starbucks Corp. is also offering consumers an easy way to give. For each Starbucks "red" beverage purchased until Jan. 2, the Seattle-based coffee chain will donate 5 cents to help fight AIDS in Africa. People can connect with other contributors through an online community and even track contributions through an "impact calculator."
Stay calm and focused
To borrow from Rudyard Kipling: "If you can keep your head when all about you are losing theirs ... Yours is the Earth and everything that's in it." Great brands have been born in recessionary times, including FedEx Corp. (1973), CNN (1980) and USA Today (1982). If you have something great to offer, if you believe in your brand, and if you're willing to support it, you don't have to wait for sunny skies to be successful.
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