Brands

Old Year Resolutions

“Happy New Year!”

As we approach the middle of January, these words do start to lose their resonance. Unlike Christmas, there’s no accepted cut-off, no Twelfth Night, to guide us. There’s a fair chance that this is the last time you’ll hear them, for a year at least… New Year’s Resolutions usually follow the same timing plan. By the middle of the month, many a ‘Dry January’ is already looking decidedly moist, gyms are getting emptier and houses return to their less tidy, but more homely, natural states. Even newly converted plant-powered Veganuary-ists may be waking up to the smell of bacon.

Saying that, as the world turns on its axis and the daylight hours extend, it’s as good a time as any to consider what changes are needed to step-up brand performance – and never more so than when you’re responsible for a team of people, accountable for their commercial performance and central to the culture they live in 5 out of every 7 days (and often more). Reflecting on the changes needed over some slightly stale mince pies, we realised that the answer lies with Call the Midwife.

If you’ve never watched it, it’s about a group of midwives (no, really!) in London during the 1950s. In most episodes, nothing happens and then it snows. Yet on Christmas Day it was the fourth most watched programme and is the biggest new drama series on BBC One since records began. Or there’s Downton Abbey too, set around the 1920s where ‘those upstairs’ flirt with ‘those downstairs’. And before both we had Heartbeat, the ITV police drama set in 1960s Yorkshire which used the same plot for every single episode for 18 years.

But what has this got to do with your marketing resolutions?

As it turns out, everything, really. When you consider why these programmes are so popular, you uncover the heart of so many frustrations with the current status quo. The gentle nostalgia appeals because it paints a picture of a period in time when communities mattered and people cared. Policemen were respected, midwives were magical and jobs were for life. Contrast this with the return to work for many in January 2018: huge commutes, little job security, the globalisation of industry set against an international political framework of growing extremism: you can understand why many are questioning just how far we’ve come in the last 60 years. We may have ‘Smart Homes’ and technology at our fingertips but now we also have armchair ‘experts’ & professional sceptics in all areas of life…why trust your doctor when you can diagnose yourself on the internet before you go to your appointment and then check whether the doctor gets it right?

In business terms, the impact on marketing teams is greatest of all as they sit at the very centre of the business: everyone is now a marketing expert. Performed well in sales? Have a crack at marketing. Done a great job as a management accountant? Try being a brand manager. Don’t expect to be one for long though – you’ll soon be moved to a role in customer marketing. Actually, do we still need brand managers? We don’t need to worry about brand positioning any more, this is the age of ‘big data’ and personalised marketing. Forget about long-term strategy, let’s build followers on social media NOW!

Extreme perhaps. But working across different client companies and sectors we see it as a consistent pattern. Unsurprisingly, the discipline of marketing itself is being undermined bit by bit. Brand success is not delivered within a calendar year regardless of resolutions. Brands are built over time, the product of a thousand small gestures – we all know this and yet too often we don’t create cultures in which such success can be delivered. So a break with the past is required. This year, make five OLD Year resolutions that will transform the happiness of your team, the approach they take and the commercial success that you deliver together. Here are our contenders.

Old Year Resolutions

OLDIE #1: Work Less
Marketing is not a science, it’s an art and it needs to be treated as such. Brand-changing ideas are seldom created in windowless meeting rooms however well thought through your agenda might be. To get the best out of ourselves, we actually need to think differently about the working day. The human mind can focus on any given task for 90 – 120 minutes, then a break is required. Instead of worrying about time spent in the office and what can be achieved in any given day, switch the focus to ‘what can be achieved in a 90 minute session?’ Can’t be done in your working environment and your culture? Not true: challenge yourself. Create the physical & emotional space needed for creativity. Structure in time out of the office or undistrubed time for focused effort. Stop multi-tasking. Spend time with customers and consumers in the real world. Less time and more focus will transform productivity.

OLDIE #2: Market Marketing
Marketing expertise needs to be respected and specialisms should be celebrated. This applies equally within businesses, within marketing teams and within the wider marketing communities of agencies, suppliers and clients. A great customer marketing manager should be allowed to flourish within their specialism, not pushed to also become an innovation expert. Agencies must also take note. Great advertising is born of great positioning which relies on solid research but no agency can claim to have expertise in all three. Marketing is wide-ranging, complex and critical to commercial success. It’s time to give the discipline back the respect it deserves.

OLDIE #3: Get Personal
Business is business, it’s not personal”. What a daft saying. Your career is not separate to your life, it’s a core and intrinsic part of it. It should be personal. When it comes to building brands, personality is absolutely everything: most purchase decisions are made subconsciously and great brands succeed by building intense emotional connections with consumers. Of course, marketing teams need to retain objectivity but this should never be at the expense of personality. A marketing team culture in which everything is a bit more personal – for the brand and the people working on them is no bad thing.

OLDIE #4: Focus On Your Foundations
Modern technology is incredible and the pace of its development creates a myriad of new opportunities for brand building. However, despite the claptrap you may read, technology has not changed the fundamentals of marketing. Brand positioning is critical, consistency of activation is imperative and a brand without a purpose is never going to inspire. Start the year by making absolutely certain you’ve got your brand foundations in place – if you’re not executing consistently against a clear positioning built on unique insights then all the Twitter followers in the world and that lovely app that works with an Amazon Echo are not going to move your brand forward before 2019.

OLDIE #5: Be A Wolf
There’s many a marketing regulation in 2018 that would have prevented the most famous advertising campaigns from existing had they been in place for the last 60 years. But that doesn’t mean that 2018’s marketing campaigns need to be timid. Brands have to be talked about. If not, they’re just products. Be bold and push boundaries, it’s the only way to be heard.

In with the old!

Rob Parker is a Partner at The Crow Flies, a research, strategy and innovation company that helps discover the direct route to success for brands and businesses. rob@thecrowflies.co.uk; +44 (0) 1283 246260. For a different perspective on your research, strategy or innovation brand challenges, get in touch. © The Crow Flies, 2018

Brand architecture…or just city planning?

At the start of the year, Coca-Cola went public with a piece of brand architecture work that will impact their whole range – what they are calling their ‘One Brand’ strategy. All brands will be united under a strategic sign off of ‘Taste The Feeling’.   This is not a branding revolution – far from it in fact. Many companies when starting out simply don’t have the financial resources to market multiple brands. Creating a single meaning is logical, commercially sensible and often quite desirable.

Brand Architecture.jpgWhat’s unusual in the Coke example is that often, companies move away from this single ‘architecture’ approach over time as they wrestle with multiple sub brands sharing a single meaning. How can a low fat, full fat, high taste, low taste, large size, small size, for the young, for the old range cohesively sit together. It’s not impossible, but it creates strain. And of course, Coke are not lacking in the funds to adopt a brand by brand approach – which is why over many years they haven’t. Coca-Cola brands – original / diet / diet Caffeine free / Zero have been connected by shared values and iconography, but have ploughed, very successfully separate furrows. Separate furrows in the same field, but separate nonetheless. Off the back of this, Coke Zero has been an incredible launch and Diet Coke – well, in overtaking original Coke has been a phenomenon. So why change?

Potentially, it’s competitive pressure. Coke can’t move without Pepsi or another challenger matching it; or indeed leading and putting them under pressure to respond. More likely, it’s pressure from outside soft drinks – from other drinks categories. But surely this is a matter of ensuring that the Coke range remains fresh, relevant and contemporary? How does making each brand share a single meaning help that – versus keeping each brand sharply targeted and focused on key needs, attitudes and consumer segments.

Perhaps then it’s Governmental pressure? Soft drinks are an easy target for obesity campaigners and the UK Government’s new ‘sugar tax’ is evidence of targeting the low hanging fruit. But again, how does a single brand architecture help?

So then, surely it must be the changing media environment? The fragmentation of channels and increasing personalisation of viewing and ownership of content by consumers. But again – it doesn’t wash. The whole point of our media landscape now surely, is that we can build more specific brand positionings for more specific audiences and needs? If anything, wouldn’t Coke be doing the opposite? Making individual brand positionings even more refined?

The confusing factor in all this is that as consumers we buy brands, not companies. Oh, there’s no doubt that how companies set up their mission and their principles casts a discrete halo on individual brands – but that’s different from owning a single minded thought in the mind of your target consumer. I may buy Diet Coke, but I wouldn’t buy original, yet when I want full flavour I may choose Pepsi Max. I love the flavour intensity of Taylors of Harrogate’s Hot Lava Java, but occasionally I just need the convenience of Kenco Millicano. Different needs, different occasions, same consumer.

Which makes the whole ‘One Brand’ approach a worry. If it’s not a response to competitive pressure, Governmental pressure or changing consumer usage habits and needs then it can only be one thing: intellectual neatness. It’s more like city planning – idealistic but difficult to deliver. Coke will find it tough precisely because they did such an amazing job building their individual brands and I suspect, it will quickly unravel (as reports suggest). Intellectual neatness is not always the commercially neatest thing to do.

David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps discover the direct route to success for brands and businesses. david@thecrowflies.co.uk; +44 (0) 1283 246260

 © The Crow Flies, 2016

What marketeers can learn from gambling on Leicester

Why you need to throw away your brand story and write some non-fiction

In case you missed it, Leicester have won the Premier League – a triumph of the improbable – much celebrated because no one predicted it. In 2008-2009 they were playing in the third tier of English football, by 2013-2014 they were still only playing in the second and just a year ago, they were fighting off relegation from the Premiership. Everybody knew that the ‘big 4’, (Chelsea, Man Utd, Man City & Arsenal for those not in the know), were the only teams ever likely to win the league again. The bookies certainly knew. That’s why they gave Leicester odds of 5,000/1 back at the start of the season. That’s 10 times less likely than the odds you could have taken up on discovering the Loch Ness monster (500/1) and 5 times less likely than seeing the Queen (hat wearing monarch not perm loving rock band) release a single which makes it to Christmas number 1 (available at 1,000/1 if you fancy a flutter). Yet people did bet on Leicester. They lay down their hard earned cash to back a vision which inspired them. They had no control over the outcome, only a belief in the story and so they let the narrative unfold.

Red LeicesterThe future of marketing, I’d wager, is to take exactly the same approach. Indeed, there isn’t any other option. Consumers have never been more marketing literate, more aware of ‘marketing tricks’ and as a result, the only strategies which will succeed are those based on fundamental truths. The days of the ‘brand story’ are behind us because consumers want fact not fiction. Look no further than everyone’s favourite supermarket, Tesco. Their sheer scale has not only caused high levels of rejection from the populous, it has also seen their own marketing campaigns repeatedly questioned and, crucially, not just in marketing circles but in the national press: farms that aren’t farms, fair trade that’s not fair and, indeed, beef that’s not beef. This has had a profound and significant impact on which horse marketeers should now back. Simplistically, consumers do now believe that any football club can win the Premier League but they no longer blindly believe in your packaging, your campaigns or your messaging. They know that a piece of fruit on the packaging is no longer proof that the product is healthy, a story about the brand’s pioneering founder is probably invented and the word ‘premium’ on a label no longer really means anything at all.

But let’s not despair, this is the best thing a marketeer could have asked for. For too long, too many brand plans have been compromised by the demand to generate maximum awareness and availability at minimal cost. Too many businesses have forced marketeers in to taking short-cuts in delivering on brand promises. It is essential that marketing plans are built on sensible commercial principles and ROI should be at the heart of any strategy. However, pursued to the extreme (as many companies have) this approach relies on marketeers’ ability to outwit the consumer – to create the perception of authenticity, of naturalness or of countless other traits and principles without spending the money on actually living these claims. Any strategy built on the principle of deception deserves to fail and its time is done. This is the natural evolution of our art: we all perform the commercial – creative dance, but brands can no longer be built solely by investing in availability. The future is all about belief.

Brands can and will inspire consumers but only if they stand for something. The key to creating marketing plans which genuinely cut through is to create genuine marketing plans. The opposite of inventing farms and fabricating brand histories can be seen in Kenco’s recent marketing strategy. The brand has long had an ethical agenda, however by 2013, their competitors were starting to encroach on their principled territory. Their reaction? They took it to the next level, they built a campaign centred purely and completely around their ethical values: coffee vs. gangs. When everyone else was focused on investing their ATL budget BTL in availability, Kenco invested theirs in Honduras, creating a scholarship to take Hondurans out of gang life and train them to become coffee farmers. They had no control over the outcome, only a belief in the story and so they let the narrative unfold. Their TV campaign shared the idea, their packaging offered consumers the chance to get involved in choosing which charity campaigns to invest in and their website continues to tell the personal stories of those involved. The result? 37% value growth and a gain of 3% share. In a declining market. As a number 2 brand in the category.

Undoubtedly it takes real bravery to place a big bet, especially one on which your company’s profit rests. Kenco’s is a bold campaign which few would have dared to implement. However, the far bigger gamble is to mislead your consumer. The key for marketeers is to create brand plans which celebrate a purpose beyond making money and to do so in a genuine way that consumers can (literally) buy in to. Doing so requires you to relinquish a little control, to create something genuine and true but, if done the right way, this can lead to the biggest and best of rewards. This is the turning point not just in the Premier League but for premier marketeers. You have two choices: bet big and let the strategy live or flog a dead horse and put it in a burger.

Rob Parker is a Partner at The Crow Flies, a research, strategy and innovation company that helps discover the direct route to success for brands and businesses. rob@thecrowflies.co.uk; +44 (0) 1283 246260

© The Crow Flies, 2016

Ale Conners* and Saggar-maker’s Bottom Knockers**

Today, it’s perfectly reasonable to challenge the assumption that the future of British manufacturing is abroad. A conversation with a former colleague, now working in the pottery industry confirmed this.

It’s a subject very much alive and relevant when you live in a county that to a large degree defined the Industrial Revolution: Staffordshire. Stoke-on-Trent was and is synonymous with pottery of course. Through the trade network of the British Empire, it supplied the world. The Five Towns tend to get talked down and are seen as a victim of deindustrialisation nowadays. The truth though is that the pottery industry is not on life support; the pot banks still fire, they’re just a different shape from the ones of old. And beer came from Burton-on-Trent, still a town shaped by its malty legacy and still the home of one of Europe’s largest breweries, the majestic Burton Union sets at Marston’s and a small crop of craft brewers – but like Stoke, Burton too has seen decline and deindustrialisation as its rather scratty appearance is testament to. And this is to say nothing about the nails and screws and rivets and tools from the Black Country’s ‘workshop of the World’.

Why then is there hope – and why are skilled brand builders at the heart of this?

Saggar MakerAdded value skills – the base to work from. Whilst there is always of risk of losing skills during deindustrialisation, British manufacturers are getting their heads round relearning the added value skills. We may not need ale conners (*beer quality inspection officials) or saggar-makers bottom knockers (**the ceramic case used for protecting the fired pottery) any more, but there are skills that can’t just be outsourced and commoditised. Designers, brewers, painters…

And an onerous responsibility lies with these individuals. The responsibility to create the sustainable value that allows manufacturing to stay at home. Take Emma Bridgewater. You can argue, it’s just a range of pottery. Yet it is so much more. The brand value is in the consistent application of an appealing look, values you aspire to, a fit with your lifestyle. And where is the Emma Bridgewater range made? Stoke-on-Trent.   And there’s an increasing range to choose from Denby, Portmeirion, Burleigh (located at Middleport, home of ‘The Great Pottery Throw Down’.)

The future is bright, the future is branded. In our “Millennial” infatuated marketing world, there’s a tendency to think that only products that eschew ‘marketing’ and tell an authentic story are the ones that will win. No. Brands that decide to use their truth in their positioning and communicate it single-mindedly have the better chance of winning. At the end of the day, the brand is where the value is. Take Camden Town Brewery, only 6 years old, but just sold to brewing giant Anheuser-Busch Inbev for £86m. “Brewery”? Well not really, for Camden Town doesn’t have a significant brewery at all – just some small mash tuns and fermenters under the railway arches, with the rest of their beer made in Belgium. Does that diminish it? Of course not, because it’s the brand that’s been bought. An instantly recognisable brand and tone of voice rooted in London (the larger brewery in London is to follow). A brand expandable here and highly exportable too.

Beyond the green and pleasant brand. British brands often struggle to use ‘Britishness’ domestically, yet it’s a real asset internationally and according to a recent piece in The Telegraph, there’s a premium of £2.1bn to be had by more clearly marketing a brand as ‘Made in Britain’. And it’s the brand that’s important: the quality conveyed by being manufactured in Britain is important, but it’s a point of parity, it’s expected. Today, we have so much more than just our ‘green and pleasant land’ perceptions of Britishness to leverage abroad. There’s more to how we’re perceived, brands like Mini have a contemporary edge that’s informed by our past yet fired up by our present, the edge from our music and creative industries – from our very culture in fact.

Category reinvention. Beer paints a stark picture of how British brewers failed to leverage their native beer styles to their advantage.   It’s not that long ago – 15 years, no more – that British ale was a holed ship, sinking fast with the rats exiting at speed. It’s the reinterpretation of British beer styles – Pale Ale, India Pale Ale (IPA), Porter, Mild, Brown Ale, Stout – by American craft brewers that’s rekindled the brewing scene over here. IPA is now the second most widely consumed and recognised beer style after lager globally. The US craft brewers have shown that it’s possible to reinvent categories in a relatively short period of time – and with it, even towns, regions. But bravery and imagination are needed. The bravery to inspirationally re-purpose the past and the imagination to paint a view of what the future can be.

In this post-industrial world, where we increasingly define ourselves by what we buy and consume, it’s these brand-building skills that can fuel British manufacturing again.

David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps discover the direct route to success for brands and businesses. david@thecrowflies.co.uk; +44 (0) 1283 246260 © The Crow Flies, 2016

As the big get bigger, what do the small get?

The potential acquisition of South African Breweries (SAB) by their larger rival Anheuser Busch Inbev (ABI) has got many commentators gasping for breath: not at the audacity of it – that was reserved for when InBev (as was) took down Anheuser Busch – but rather the implications of the sheer scale. The scale, both of the deal (the fourth biggest corporate takeover) and the ultimate beast it will become (who we shall call ABSAB).

Interestingly, a stock response of commentators is ‘Don’t Panic Mr Mainwaring!’ The deal, as these deals do, will create opportunities for smaller operators. Drinkers, reviled by the deal and the inevitable consolidation / loss of brands in the shake-up, will vote with their wallets and support the little guy. New market niches will open up, too small for a goliath like ABSAB to spot, yet alone exploit. David will win the day! Fleet of footedness, quick decision-making will out!

And there will be some of this. Of course there will. But on balance, it’s a romantic notion and one that, in truth, isn’t borne out by precedent.

The first issue is growth. In most western, mature consumer markets beer is flat-lining or declining. Drinkers are drinking less. This pressure rolls through to licensees: what to stock; how much space they can give to beer and ultimately what brands end up on the bar. What licensees want is a range of guaranteed strong sellers and a ‘something interesting’ selection. ABSAB (Stella, Peroni, Budweiser) can fulfil one side, craft can fulfil the other (in fact, increasingly, ABSAB can fulfil this other side too). In less mature markets, there is underlying growth in beer consumption – in central and South America for example – and that growth is driven by brands. Big brands; famous brands, foreign brands; often American or European: brands that are a status symbol. ABI and SAB are getting together because growth in their core markets is slowing (or has stopped). They’re getting together because in emerging markets it’s about brands. The deal allows more consumers to access their brands in more markets, efficiently and cost effectively. And most consumers won’t react negatively. They won’t even think about it.

GoliathThe second issue is craft. Craft beer, however you define it, is exciting, interesting and inspiring. It’s been brilliant for beer in many markets. But craft beer is, what? At best 10 – 15% of market volume. Most of us, most consumers, simply aren’t in the franchise or drink it infrequently. Most of us, in short, drink the sorts of beers that ABI and SAB make.   Now, clearly there is growth and clearly craft is slowly, steadily impacting consumer perceptions of the market. But if we assume that the basis of the ‘Innovation-Adoption Curve’ is correct, then most of us are fairly unadventurous. We’ll follow. And what will this mean in terms of brands? It won’t mean opportunities for spontaneous fermented wild beers hitting the mainstream. It will mean the likes of Blue Moon, Goose Island, Meantime, Lagunitas, Kona becoming more widely available, and if we’re lucky the larger – independent – craft brewers – Sierra Nevada, Brooklyn, Boston Beer will be available too. But the real opportunity if for the crafty beers under the umbrella of brewers like ABSAB. They offer the rationale of differentiated choice, with the convenience of a single and efficient point of supply.

What ABSAB appreciate is that currently global brewing is over-supplied. There are two responses. One, consolidate to ensure supply over time reduces and is done cost effectively. Two, build brands. This deal does both and will be successful.

For smaller brewers, given that they can’t consolidate to the same level, the real opportunity is the second option. To build brands. Take the UK beer market. There are now 1,700 breweries. The UK is the most breweried-per-head country in the world. Yet the beer market has been declining at about 4% a year since 2005. Per capita consumption of beer is falling, despite the noise of craft. There will be a fall out, even with the UK Government’s small brewer duty relief (perhaps because of it). Now is the time to build brands not supply product. Look at Camden Town, only three years old, but already widely available throughout the capital. Why? Good beers (with broad appeal); tremendous branding. Look at Beavertown. Good beers (with more challenge to them), impactful branding.

No, the opportunities presented by ABSAB getting together are twofold. For consumers, it’s in the truly niche operators, who make more complex, highly differentiated and challenging beer styles that they can supply effectively to the market. For small brewers who don’t, the real opportunity is to build your brand. And the real money is to be made when the likes of ABSAB buy them from you.

David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps discover the direct route to success for brands and businesses. david@thecrowflies.co.uk; +44 (0) 1283 246260

 

© The Crow Flies, 2015

Tales of Ales and Tails

Tales of Ale and TailsOn a recent trip Stateside, I got a real flavour of one of the retailer’s major dilemmas. The store was a large Publix on the Gulf Coast of Florida – certainly as big as a large UK supermarket. As always, I was spending more time looking for stimulus for work than actually doing the food shopping … and then I turned down the beer aisle.   Now, my figures will be slightly out but close enough to be both defensible and illustrative. In the US, the market has two major brewing players – Anheuser Busch Inbev and Miller Coors who control about 80 – 85% of the market’s supply. And then there are the craft brewers, alliances of craft brewers and speciality importers.

Yes, craft beer is likely to be more profitable on a unit basis than big beer, but to command well over 50% of the space? Commercial craziness, no?

That’s the dilemma for the retailer, particularly if you are mainstream / mid-market. How do you optimise your range and space and how the hell do you decide which brands to back, to underspace, to overspace?

Going back to craft beer (or increasingly snacks, spirits, bread, cheese…) it would be easy to argue both sides. For the big boys, it would go something like this: ‘Hey, you’re crazy. I know there’s all this craft beer hype, but just look at the rate of sale and the market share… and times that by the price we command… you should be overspacing us not underspacing us!’. If you’re a craft brewer, equally, you could say, ‘Consumers are tired and dissatisfied with the same old beer choice. They’re individuals not ‘consumers’ and a craft beer range caters to them, shows that you are a specialist and ….well, look at the profitability’.

There’s no right or wrong here, but there seem to be some common denominators.

How appealing is the category: craft beer is over faced because consumers care; it is increasing in both household penetration, frequency and basket size. Authentic beers, with interesting stories are cutting through with shoppers when all big beers can offer in return are new can sizes or bottle shapes. Essentially, research is showing that when a category can drag shoppers off their habitual shopping trajectory, then it’s worth backing.

Brands count: craft beer in the US isn’t stocked out with hopeless chancers. There are strong emerging brands. Brands that are working either because they are genuinely different (say, Dogfish Head), local (say Cigar City Brewing from Tampa) or frankly growing in fame and appeal (say Sierra Nevada, Stone Brewing, Sam Adams, The Bruery). Over in the UK, with Tesco for one aiming the gun at these long tails, it’s the categories where no brands exist, where own label can do as good as, if not better job than the branded alternative where attention is needed.

Principles matter: many of the craft brands in the US have managed to grow in value off the back of their founding principles, principles which they have stayed true to. Jim Koch of Boston Beer is a divisive character because he unapologetically popularised craft beer by owning the agenda, by being in the face of big beer owners and drinkers. ‘Here is a better choice’ he would say, when not dunking himself in vats of Boston Beer. But equally, Fritz Maytag saved Anchor; Keith Grossman built up Sierra Nevada on the back of kit he beat into shape with old ball hammers and welding kit. All of them wanted to drink better beer, so they did something about it. Brands of conviction, attract.

The competitive space is changing: in Chris Anderson’s book, ‘The Long Tail’*, he talks about how retailing will change because of the impact of the internet. Look at Amazon: online bookshop becomes frankly, anything they can sell that they can store and transport; no stores, no range reviews, no square footage to overly worry about. Want a rare Dutch flower arranging book (yes, Mum, I’m referring to you), they’ll get it. As consumers we understand that that might not be the case for a Sainsbury’s or an Asda or a Tesco – but for how long. Internet retailing allows us not to worry about big brands, the Number 1s and 2s, but any brand that takes our fancy. Until food retailers abandon their mega sheds, any strategy will be a compromise – we’ve got a big range, but…..

Interestingly it seems to open up opportunities at both ends. At the ‘endless choice’ end of retail will be the likes of Amazon; at the other, quite insightfully, will be the focused retailers who recognise that as shoppers our brains can only handle so much choice. Reduce the range, reduce the choice, watch sales grow: take Lidl or Screwfix.

And so it turns out, that was my dilemma. Standing in front of this amazing beer fixture; looking at all the choices, reading labels, thinking ‘Oooh, I’ve never had that..’ but totally unable to make up my mind.

*Chris Anderson, ‘The Long Tail’, Hyperion, 2006

Slide1David Preston is founder of The Crow Flies, a research, strategy and innovation company that discovers the direct route to success for categories, companies and brands. david@thecrowflies.co.uk; +44 (0) 1283 246260

Time for a new brand:retailer dialogue

Pow wowOver a coffee today, I was chatting to a friend about the scale of Tesco’s recent loss. £6.3bn in an enormously cash-generative business is some feat. Sometimes though, it’s best to take the pain with big cuts rather than little slithers, and this feels like a case in point. While it seems few and empathising with Tesco that much, for many suppliers it will create shudders of commercial fear.   A reduction of 20,000 stock keeping units has been promised: you can bet that these results, store closures and closure of new store opening programmes are hardening that resolve at Tesco HQ.

And of course, it’s not just Tesco: all ‘middle ground’ retailers are struggling, their ills manifesting themselves in different ways. The concern is that the emerging reaction is underpinned by fear. Fear for the retailers that their like-for-likes will relentlessly fall and with it the share price (and with that the value of executive long-term incentive plans). Fear for suppliers, that their brands just need to slash to survive; slash their range; slash their prices; slash their profits; slash their staff numbers.

If ever there was a time for brands to step forward and own – or create, if necessary – their category agenda, it is now. This is an easy thing to write, I know. And perhaps it is not a ‘rocket science’ statement, I admit: but it needs to be said nonetheless. My fear is that the reaction within buying teams, within marketing teams, within sales teams is for category management. To understand the dynamics in the nth degree of detail; to range accordingly; to push into the ‘big data’ under the guide of ‘insight’ and negotiate new terms, or defend accordingly. Probably, big suppliers with a strong portfolio want this – it’s an opportunity to claim their fair share of space when for years they have been under-spaced. But most, the majority, will hunker down and prepare for trench warfare.

The current crisis in UK food retail though, is not really a crisis in organisation or supply. Tesco won’t see it that way I’m sure, and I support their open heart surgery. But underneath it all, this is a crisis of identity and of market position. Of who plays around the edges with unique, but more narrow positionings, and who will stand up for the middle ground proudly, distinctively and prepare to inspire.

There’s always been an opportunity for the likes of Tesco, Sainsbury, Asda or Morrisons – and the brands who sell through them – to do this – but none has taken it. And they haven’t because everyone has been distracted by the minefield of eggshells they have been mutually created. Can the brand trust the retailer to deliver on their distribution promises and activation? Can the retailer trust the brand to deliver the progressive innovation agenda and improvement in terms? The dialogue becomes tentative, untrusting.   And then, in walks an Aldi and boom! The agenda has changed and you’re on the back foot.

This is the time for a new dialogue between brands and retailers that must be built on trust. Now is not the time for category management, now is the time for category leadership. For brands to step forward and be bold with their vision, their agenda, their picture of the future. To partner with retailers to create a shopping experience that helps the consumer; that solves those small but important problems in their life; that delivers value certainly, but not just low price. And it’s time for retailers to step forward and be bold too: to be clear what they are offering and work with brands to create this mutual vision. An agenda that builds the brand not just the retailers’ sales. It is time, in short, for all the words around ‘win:win’ to be put to one side and for the actions to follow suit.

David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps brands find a direct route to long lasting success. david@thecrowflies.co.uk; +44 (0) 7885 408367; www.thecrowflies.co.uk; @crowflieshigh.

© The Crow Flies, 2015

Valuable brand lessons from the Beer Marketing Awards

I was in America when the 2015 Beer Marketing Awards event was held, but being a judge I already knew the results and had had to keep shtum for a few weeks. Beer awards generally are for the product: either international events or more local, “Best in Show” sort of things. But these awards were different, acknowledging that in the current boom in cask and craft beer in the UK the brand is, or certainly will be, as important as the beer itself.

Recognising this is a huge step forward. Legendary beer writer Michael Jackson was consciously averse to the idea of brands in beer: he was born and experienced a time – in the 1960s and early ‘70s – when the national brewers strove to create one size fits all products – Watneys Red Barrel, Worthington ‘E’, Double Diamond. You could conclude that this was an early exercise in brand building, but in truth, it was really operationally driven: to remove significant cost and complexities from bloated supply chains and huge product portfolios after years of acquisitions. Brands, on the other hand, are built on a quality product, indeed, on a distinctive experience – but it is unsurprising that Jackson was influenced by these dark times for beer lovers.

So it has taken some time for beer marketing awards to emerge, and it has done so at a time of a fundamental change in what people are drinking and who is making it.

I’m not sure what I was expecting walking into to help judge. It would be easy to believe the hype about Millennials. The brand: consumer relationship is different now; here are consumers who are actively rejecting ‘corporate’, embracing small, local, artisanal, I don’t know – not buying their beer but swapping it on Swapz or Gumtree?   And the art of marketing itself, the rule book has been ripped up hasn’t it? No big TV adverts, no communication built on a functional USP, heaven forbid, no humour lest underage drinkers are beguiled. In short: I was expecting marketing outputs that reflected this ‘new paradigm’. I was expecting marketing activities, frankly, that I would loathe.

Thankfully, it wasn’t like that.

Some things were different though. Firstly, there was a real focus on the trade, from brewers the size of Heineken to a start up from a couple of lads with an idea (in their kitchen surely, it always is). Trade marketing, a term rarely used today despite its newness, has always felt like the illegitimate sprog of ‘proper marketing’. Yet it seems that beer brand owners are waking up to how critical it is in a market where, unlike food say, you don’t rapidly get 100% distribution in the supermarket and go from there. In the on trade, out in pubs and clubs, as a new brand you may be lucky to get one point of distribution on a town’s circuit of bars. Building a meaningful relationship with licensees therefore is imperative.

And of course, there were digital and social ideas aplenty, in fact, it felt like a case of quantity over quality – not to say that the ideas were poor – but some were well, lazy – they could have been amazing ideas if all the weight of the business was put behind them as part of a bigger campaign and frankly, they tried to achieve less. Alas, it seems too many people are believing the hype.

No, what remains is that the core skills and knowledge around brand management are just as important today as they ever were. In beer, where there are now more breweries per capita in the UK than anywhere else in the world and alcohol consumption per capita is falling, they’re not just going to be important but business critical. Building a brand isn’t a marketing activity. It’s a business activity – the winners of the awards seem to get this.

They get that you need a strong idea. BrewDog for example, essentially position themselves as ‘anti Big Brewer’ and therefore in a way, anti-marketing. But their immensely collaborative #Mashtag campaign was pure marketing: getting your consumers to help you create a new brand that you will then sell back to them, fully bought in and advocates of it to others. A lovely idea, a deserving winner.

They get that you need to own a thought in the mind of your target drinker and to then be ruthlessly consistent. Estrella Damm, distributed in the UK by Charles Wells, didn’t receive an award but a commendation, nevertheless, it’s worth highlighting how strongly they bring everything back to their central brand idea – the lifestyle thought of ‘Mediterraneamente’. All paths lead to Barcelona, it seems.

Vedett penguinsThey get that you need own an experience. The Belgian brand Vedett won the award for ‘Best Use of Merchandise’, which sounds quite prosaic, but underlines how something as simple as merchandise, glassware, promotional items can be when used to link and join all stakeholders in the brand in a virtuous, self-supporting relationship. Sound a bit OTT? I don’t think so: the Vedett Extra campaign focused on a creative use of merchandise, making it an essential part of the brand world and experience – indeed drinkers could get involved in creating it. Consequently, the ‘brand’ lives outside drinking the product itself and punches well above its weight amongst customers and indeed, consumers.

They get that focus and sacrifice – doing less stuff, doing it bigger – are vital. Trooper Beer for one, saw this. A collaboration between Robinsons of Stockport and Iron Maiden, it’s a brand with distinct advantages – a huge, positively disposed group of potential customers. Yet, the brand itself is pretty new and small – so it focused solely on getting the distribution known so potential drinkers know where to buy it. Marstons, with their beautifully titled #Goblineers campaign did something similar.

Sometimes having a smaller marketing budget (if any) is better. It forces choice.

IMG_3351_2They get the need to be instantly recognisable. The new London brewery, Beavertown won the award here for their can design. Not a new design, but for applying their design to a new packaging format in a truly impactful way. Whilst many brands think ‘how can I fit my design best on this pack?’, Beavertown asked, ‘how can I use this pack to best show off my design?’. The results speak for themselves (and Beavertown’s bravery – although I’m sure they wouldn’t see it like that, is important too)

And they get that traditional media isn’t dead. Yes, personalised, digital communications are important nowadays. But you also need to establish your idea and get it out there. The overall winner was a distinctly traditional, ‘non marketing’ business – Fuller, Smith & Turner. Their main brand is London Pride and that they should win the first Overall award was unanimous. Why?

They faced into the brutal truths facing them. The explosion in breweries on London over the last 5 years has been seismic. Put it this way, I ran the sales division for a multinational brewer in London in 2006. There were three London brewers, Fullers being one of them. Nine years later, there are over 70. 67 of which have a claim to be younger, funkier, more daring than the old boys in Chiswick. Fullers recognised this and used their digital platform to create awareness and trial for the brand (#EmptyPint) – offering to buy a second pint for free if you tweeted a picture of your empty pint. This presumes of course that you buy a first.

Made of London

Source: Fuller, Smith & Turner Ltd.

And they stayed focused on their main brand of London Pride. The lazy reaction could be ‘we have to do new things, to fight on their turf’. Rather, Fullers recognised the quality and inherent strength of their brand and sought to build fortifications round it whilst inviting people into the Keep. And in doing so they stayed true to their provenance and their position. Their creative, ‘Made of London’, ran (is running) mostly on the highly traditional formats of posters and print. Despite the short term competitive challenges Fullers are taking a long term approach, ‘Made of London’ is spot on for the brand and timeless in execution and tone.

Which just goes to show that an old dog can teach a new dog old tricks.

David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps brands find a direct route to long lasting success. David was also a judge of the 2014 Beer Marketing Awards. david@thecrowflies.co.uk; +44 (0) 1283 246260; www.thecrowflies.co.uk; @crowflieshigh.

© The Crow Flies, 2015

The Power of ‘Or’

The Power of Or

 

In these frenetic, pressured times it’s increasingly common to see businesses pushing to do more, more, more. A leader in one of my old businesses called it “the power of and”. Oftentimes, this multitasking ability is painted as a virtue, a desirable trait. Bold leaders, macho businesses, taking on more, broadening scopes of responsibility, acting like superheroes. It is a shorthand: leaders who take on more are leaders that achieve more. It’s likely that this sounds familiar to you. Perhaps this describes what is expected of you in your role.

Alas, it is a load of old conkers.

The more I work on brands, helping businesses decipher what drives their brands, their business and what the priorities are, the more I realise that the desirable trait in a leader, the desirable trait in a brand in fact, is the ability to understand that landscape and prioritise. No, more than this, to sacrifice.   Eminent business strategy ‘guru’ Michael Porter, he of ‘The Five Forces of Competitive Strategy’ wrote, “the essence of strategy is choosing what not to do”.  He was referring to business strategy, but the point still holds.

In fact, ‘and’ is pernicious, dangerous. Helping a client with brand planning recently we reached a great place. Throughout the session there was committed agreement that with limited and tightening budgets, the brand had to do significantly less in order to cut through. In fact, the brilliant news was the brand would focus on just one major activity in the calendar year, hunkering down tightly on a single target group, devoting its total resources to one time period and leaning all the investment against it.

But in the weeks that followed it unravelled. An alignment meeting with the senior team was the root cause: one sales director had asked for more to support a competitive threat in his channel. The marketing director had asked why they weren’t putting some effort into another, slightly older demographic; the trade marketing controller pushed for greater category investment. Ultimately, the plan was more focused than the previous year, but ‘and’ had done its damage. A brand with a chance to cut through won’t now do so.

Of course, this isn’t a call to restrict your agenda such that it is so narrow you lose your competitiveness. Rather, it is about finding your agenda – for example, your brand positioning or your corporate purpose or your people strategy – and then asking ‘or’ questions around it. What if we were to focus our investment on these two activities? Or what if we were to put everything behind one? What if we moved all our media online from traditional sources for a year? Or, what if were to put it all into an experiential programme. ‘Or’ focuses, ‘and’ dissipates.

The promise of the ‘next big thing’ leads us into temptation: ‘we can do this as well” or ‘look how cost effective the new widget is, we can add it to our mix’. Truth is, what marks winners out is the ability to focus and sacrifice. Find your agenda, keep it tight and watch out for the weakening effect of ‘and’.

Slide1David Preston is founder of The Crow Flies, a research, strategy and innovation company that helps brands find a direct route to long lasting success. david@thecrowflies.co.uk; +44 (0) 7885 408367; www.thecrowflies.co.uk; @crowflieshigh.

 © The Crow Flies, 2015