Wolff Olins

ALL DIFFERENT, EACH UNIQUE

What’s going to see us out of this economic mess the (largely male) banking population got us into? Women!

That may sound like feminist rhetoric but it’s grounded in solid fact: 85% of all brand purchases are made by women. 88% of mothers in the US (the world’s largest economy) refer to themselves as the household CFO. 
To take advantage of that immense spending power, companies and marketers alike need to work out what it is that makes women not just like but buy what they have to offer. And the rewards are big if they manage to crack the golden egg of the sale funnel: recommendation - women are passionate advocates for the brands they love, and extensive social networkers (particularly in the West).

But currently there is often a big disconnect between women in real life and women in advertising. The cliches – woman cleaning, woman ruffling child’s hair as she’s cleaning, woman serving up steaming gravy pots to her grubby male family members – come thick and fast. And women – of all ages - can spot it a mile off: a US cleaning brand recently got short shrift from a 9 year old girl on their TV ad: “Dear Swiffer, I think your commercials are totally sexist. There is no good reason why in all your commercials there is a girl cleaning the house with Swiffer.” And a lot of websites aimed at women are no less guilty of stereotyping – laying on the pink, diamonds and cheesy smiles thick. 

Women are different to men, but they are also different to each other. It’s ridiculous to suppose you can generalise about what 50% of the population wants. When brands get it right in the lucrative women market, they don’t make assumptions – they make things that are useful and relevant to women. 

Take Nike: back in 2006 they re-did their corporate strategy, making ‘women’s fitness’ one of the key pillars of their offer. Since then, they’ve created products and services that are particularly relevant to their female customers – apparel that’s more feminine, creating new ways for their network to connect…and all with a black background. 
Similarly, LinkedIn researched how women used their service – noticing that they are more likely to connect people, liking to help other women like themselves get ahead – and adapted to suit them more; successfully managing to change their demographic from 79% men 7 years ago, to almost 50/50 men/women today.

And it’s even possible in the world of consumer electronics. In 2007, Pure Digital Technologies shunned the traditional, male-dominated CE venues to showcase their attractive, pocket-sized camcorder the Flip. Instead they invested in getting arguably the most famous and influential Western women on board as their key advocate: Oprah and her TV crew made videos with the Flip from behind the scenes on her TV show, and posted them on YouTube - neatly demonstrating the useful and fun ways Flip can fit into your life as a an active, ambitious, socially networked woman (and helping to keep Flip at the top of the sales charts on Amazon).

Other brands should learn from these examples. It’s OK to target women. It’s OK to acknowledge that they do things differently. But don’t rely on stereotype – know which women it is you’re targeting and make sure you give them something great to talk about to their friends beyond a feminine colour palette.

[Amy Norman & Jean-Yves Minet]

BRANDS THAT WON’T DISAPPEAR

While some companies such as Interbrand, Millward Brown Optimor, and FutureBrand are focused on establishing a ranking of the strongest brands worldwide and estimating their value, 24/7 Wall Street takes quite the opposite approach. Every year, the publication compiles a report of brands that are likely to disappear in the near-term. Both approaches are interesting, and confirm that success of the business is often correlated to health of Brand.

Unfortunately, many brands disappear every decade. Sometimes the economic context plays against them, but most of the times the brand is not able to capture opportunities from the market, the customer, or innovation.

So how do you build a strong brand?

Everyday, keep in mind these three basic principles when you manage your brand. Big or small, strategic or tactical, national or international, no matter how important the decision is, don’t forget these three principles:

Put your brand at the middle of your business strategy. Brand is not a badge you stick on your offer. Brand is a tool that sits at the heart of your organization and helps you drive every decision you make about your offer, your capabilities, your culture or your image. In order to be a powerful tool, you need to have a strong idea behind your brand.

Deliver on customer expectations. It’s not what you say that matters; it’s what you do. Listen to your customers, surprise and delight them with experiences that make their lives better. Your brand is not what keeps people loyal - the product itself is what drives people to buy.

Be transparent. Communicate with your employees and use Brand to engage with them. Invite your customers to be part of the creation of your offer. Use Brand as a platform to empower people to co-create the experience. For example, use social media to create a conversation with your audience and build relationships with them. 

(Jean-Yves Minet)

IS THE 4Ps FRAMEWORK STILL RIGHT?

We live in a world where things are changing fast, where the power is shifting from brands to consumers, and where consumer behaviors are constantly evolving. As a brand manager, it’s hard to keep up… The four Ps (Product, Place, Promotion and Price) framework was created in 1964 by Neil H. Borden (The concept of Marketing) and has been widely used by generations of marketers. The four Ps are the parameters that the marketing manager can control, subject to the internal and external constrains of the market environment.
 
Is the 4 Ps framework still relevant today? Are the 4 Ps still the right concepts to keep in mind when you think about marketing? The answer is yes, more so than ever. The framework helps the marketing manager to innovate based on what matters.
 
Product: the fact that 75% of new products fail at launch demonstrates that people don’t need more stuff, they need better experiences. More than thinking about products, brand managers should think in terms of experiences. How can the offer be integrated within a social context? How can product delivery build customer loyalty when quality is less and less a differentiating factor?
 
Place: the Internet opened new opportunities for product distribution. More than a new retail channel, the web represents today an enabler for a new type of transaction. How does the Internet reshape the distribution strategy of your offer?
 
Price: the severity of the economic crisis has prompted consumers to fundamentally rethink the way they act and consume. Price is probably the burning topic in any brand manager’s head right now. 55% of the people who reduced spending as a result of the recession did it through choice (source: McKinsey consumer research, 2010). How will your pricing strategy reflect the new thrift mentality of consumers? How can you leverage new saving mentalities to innovate on new products and services?
 
Promotion: promotion represents “the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response” (source: NetMBA.com). Today, 65% of people feel they are constantly bombarded with too much advertising (source: Yankelovich 2009), and 76% of customers don’t believe the claims made in advertising (source: Word of Mouth Marketing Association, 2010). Promotion is still at the core of successful marketing strategies, but tactics need to evolve. How can you create relevant, open and long-lasting conversations with customers?
 
Don’t think the framework is bad. Despite its limitations and perhaps because of its simplicity, the 4 Ps framework still offers a solid approach to marketing. What represents each of the 4 Ps may have changed, but the framework still invites each of us to ask ourselves the right questions.

(Jean-Yves Minet) 

MAKE IT SIMPLE

Companies like to make things complicated for consumers. And when legal gets in the way of marketing, things become really complex and not consumer friendly. Think about banking for example, many banks are hindered by the profusion of legal procedures they have to follow in order to bring new products to market. Banking is one of many examples.

Unlike many other brands, Apple responded once again to consumers’ desire for simplicity. They recently introduced a summary of legal terms and conditions in plain English, helping the consumer navigate the new iTunes store (see picture). Simple, to the point, only the information you need, with words that everyone understands, Brilliant.

People need and desire simplicity. The recession is actually accelerating this trend for simplicity. Unlike consumers in previous recessions, who greeted the return of financial stability with a buying spree, current consumers entered the recession feeling bloated. When they regain their ability to spend, consumers will continue to buy simpler offerings with the greatest value. Brands that deliver simplicity will have a significant competitive advantage.

(Jean-Yves Minet)

DIGITAL MARKETING GONE PRIME TIME

Technology has radically changed people’s behaviors. An interesting article in the New York Times shows how much the Internet has impacted life’s routines, including the once predictable rituals of the morning. People are hooked to their BlackBerrys, iPhones and other computers for checking e-mails, answering messages from FaceBook friends, twittering their first activity of the day, or playing games.

Of course, this change in morning routines has deep implications on social interactions and family relationships. Family time has been replaced with digital time.

What is the implication for Brand?

It creates “prime times” for digital advertising; the same way “primetime” was created on TV. Digital advertising – and digital marketing in general – can become more relevant with better tracking consumer’s online behavior.

If you know your consumers will check their FaceBook page between 6 and 8am, imagine how many opportunities this creates for your brand. Starbucks could make an offer on FaceBook you could redeem on your way to work instead of having your coffee at home. Chili’s could send you an e-mail coupon for a lunch with your friend, to be redeemed the same day. Had a bad night? A pillow company could advertise on your favorite website about the comfort of their revolutionary pillow. Etc, etc.

By getting a better view of online consumer behavior, brands will be able to tailor their messages, not only in terms of content, but also in terms of time placement.

(Jean-Yves Minet)