This blog provides practical information on brand research, strategy and positioning. It also covers brand equity measurement, brand architecture, brand extension and other brand management and marketing topics.
Showing posts with label McDonald's. Show all posts
Showing posts with label McDonald's. Show all posts
Monday, May 14, 2018
Fast Food and the Customer Experience
McDonald's recently created a marketing campaign promoting its new customer service including mobile ordering, customer touch screens and table service. Panera Bread has been using customer touch screens for awhile now. Wendy's has upped its game with very friendly and efficient staff who always greet customers and help them however they can. My local Boston Market is very well run with friendly table service and very clean bathrooms. I recently went to a Boston Market in Ft. Lauderdale that did not have table service, had a sparse number of tables and a very dirty bathroom. Boston Market clearly does not have uniform quality control or at least has a huge variance in quality of its restaurant managers. The Ft. Lauderdale Boston Market looked so neglected that I was sure it would soon go out of business.
The worst example yet of a poorly run fast food restaurant was one I recently had at a local Burger King restaurant. I must admit that I am not a big fast food restaurant user and I had not been to a Burger King in several years before I had the experience I am about to describe. The bathrooms were filthy, the tables were dirty, the staff members looked disheleved with poor personal hygiene. One employee wiped his nose with his hand while standing on the other side of the counter from me. And the person who took my order got the order wrong. When I pointed this out, he told me that the machine that made the drink I wanted was not operable so he substituted another drink of lesser value, a drink I did not want. He did not offer to get me something else or reimburse me for the difference in price. Based on this experience, I am pretty certain that I will not step foot in a Burger King again for a very long time if ever.
The point of this post is to point out how important a carefully designed and consistently executed customer experience is to brand perceptions and repeat purchase probabilities. I will continue to eat at my local Boston Market, Panera Bread and Wendy's but am very unlikely to step foot in a Burger King again.
Monday, September 21, 2015
The Most Common Problems with Brand Extensions
Some of the most common problems associated with brand extension are:
- Extending into a category in which the brand adds nothing but its identity (i.e., its products or services are not significantly different from current products or services in the category)
- Extending through opportunistic brand licensing without regard to its possible impact on the brand
- Extending into lower (and, sometimes higher) quality segments
- Not fully understanding brand benefit ownership, transfer, or importance
Unsuccessful brand extension examples:
- Bic perfume: How do you leverage the “small disposable pocket items” association?
- Levi’s tailored classic suits: What is Levi’s primary association? (casual clothes)
- Campbell spaghetti sauce: Why didn’t “tomato sauce” transfer from Campbell’s soups to spaghetti sauce?
- McDonald’s Arch Deluxe burger (for adults): What is McDonald’s primary association? (fast-food for kids)
- Bayer Aspirin-free: What is Bayer’s primary association? (aspirin)
- Volvo 850 GLT sports sedan: What is Volvo’s primary association? (safety) What is a Volvo’s primary proof point? (boxy armored-car styling)
- Colgate kitchen entrees: What were they thinking?
- Or, my all-time favorite, New Coke: What is Coke? (“It’s the real thing”—with a long-time secret formula.)
Friday, September 11, 2015
Brand Accessibility
Accessibility is one of the five drivers of customer brand
insistence in our proprietary BrandInsistence brand equity measurement
system. How does accessibility
contribute to customer brand insistence? First, accessible brands insure that
brand preference is converted into brand purchase. Why wouldn’t I purchase my
preferred brand if it were completely accessible to me? If it were
inaccessible, I might purchase a substitute product or brand or perhaps nothing
at all. But I am getting ahead of myself. First let’s define accessibility.
Accessible brands are brands that are easy to find, purchase and use.
What makes something accessible? Distribution. When a brand
has broader distribution, it not only increases its accessibility, it also
increases its awareness, one of the other five drivers of customer brand
insistence. So increased distribution can increase customer brand insistence in
two ways.
If a brand is ubiquitous, there is no excuse not to purchase
it if it is your favorite brand. McDonalds, KFC and HSBC strive to be
ubiquitous worldwide. One of the key
pillars of Coca-Cola’s success is distribution. It talks about pervasive
penetration and being within an arm’s reach of desire. And, at least in my town, Dunkin' Donuts seems
to be opening locations every few blocks, competing with Starbucks for
ubiquity. Hallmark’s closing stores
around the country certainly demonstrates that it is in trouble.
The Internet is changing the importance of physical
distribution a bit because it enables people to research and purchase products
24/7 from the comfort of their homes. This works better in some categories than
others. For example, physical distribution is still important for many articles
of clothing because unless you can try the clothes on and see how they fit,
look and feel on you, you don’t really know if you want them. Online retailers
have innovated many approaches to overcome this limitation, but it is still a
limitation.
But, what other than distribution can increase
accessibility? If you think about the two most important scarce resources in
people’s lives, they tend to be time and money. So anything that takes less
time or costs less money increases accessibility. A somewhat counterintuitive
corollary of this is that if you can make the experience more interesting,
educational, entertaining, exciting, nurturing or otherwise positive, often
people won’t mind spending more time. The same thing goes for money. If the
higher price is a signal of social status or good taste or some other positive
self-expressive quality, a person may not be as put off by the higher prices.
Time and money also relate to the value brand insistence
driver. Value has a numerator and a denominator. In the numerator are all of a
brand’s benefits – functional, emotional, experiential and self-expressive
together with the values it shares with its customers. In the denominator is how much time, money and
perceived effort it takes to purchase and use the brand.
High prices can make brands inaccessible to many people. For
instance, not everyone can purchase a Tesla automobile. And even fewer people
are able to purchase a Maserati or a Bugatti.
I often use the example of choosing a college or university
to illustrate the concept of brand accessibility. If a high school student has
a strong preference for a specific college, but that college does not accept
him, what is that brand’s accessibility to him? How about if the college puts
him on the waiting list? Or, if the college defers his admission for a year?
What if he is accepted to the college but, after financial aid, that college
will cost him ten thousand dollars more a year than the other colleges to which
he got accepted? So price (or cost to
the customer) affects brand value and can affect brand accessibility too.
Limited store hours, nearby road construction, overcrowded
parking lots, exceedingly long lines or only accepting cash as a form of
payment can also reduce accessibility.
Accessibility helps brands grow through increased sales to
existing customers and acquisition of new customers. Research has shown that
larger brands have many advantages, even beyond the economies of scale and
network effects. They have greater awareness, market penetration, popularity, and
perhaps surprisingly, customer loyalty.
Even brands that have exclusivity as part of their mystique
must be accessible in some way to their target markets. For these high-end products and brands, price
may be the best accessibility limiter. Price will be an issue for most people
but not for the target customers. However, there still needs to be some sort of
easy distribution method. The Internet is one option. Rodeo Drive (CA), The Mall at Short
Hills (NJ) and other upscale shopping districts and centers is another.
But how about selling the products at polo matches, equestrian events, yacht
races and other targeted events.
Hopefully, this has shown that accessibility is an important
driver of customer brand insistence. The other two drivers I mentioned in this
article are awareness and value. The two brand insistence drivers that I did
not mention (until now) are relevant differentiation and emotional connection.
But, I will talk more about those in other blog posts.
Labels:
brand accessibility,
brand awareness,
brand loyalty,
brand value,
Bugatti,
Coca-Cola,
distribution,
Dunkin' Donuts,
hallmark,
HSBC,
KFC,
Maserati,
McDonald's,
pricing,
Rodeo Drive,
Short Hills Mall,
Starbucks,
Tesla
Thursday, July 30, 2015
Robust Brand Identity
A brand's identity system helps people recognize the brand. It helps people encode the brand in their memories and quickly extract it from their memories. The system incorporates a number of identification triggers. These almost always include visual components but can also include other sensory components such as Cinnebon's cinnamon scent and Harley-Davidson's engine sound. Several hotels are exploring distinctive aromatherapy scents. The visual components can include a shape or icon such as Nike's swoosh, McDonald's arches or the Olympic rings. Often packaging shapes are a part of the system such as Coca-Cola's distinctive bottle shape or Absolut vodka's unique bottle shape. Colors are usually a part of the system such as John Deere's green, UPS's brown or Southwest Airline's vibrant color palette of blue, red, gold and orange.
Consider personal brands. I am known by my name. Sometimes people associate me with my Brand Aid book. Many people know that I earned an MBA at Harvard. People who interact with me in person know that I usually wear a bow tie with a jacket. People that know me well expect me to arrive in a Toyota Prius as I have owned three of them since 2000. And friends know that I am a passionate sailor. Each of these are "brand" associations that may also serve as triggers for people to think of me. My brother associates me with scary clowns, but that is another matter entirely.
The more distinctive elements that you can build into your brand identity's system the better. They may include names, shapes, colors, patterns, type fonts, visual styles, sounds, scents, textures, flavors, spokespeople, jingles and feelings. You can also associate your brand with occasions, events, situations, product uses, lifestyles or particular types of people.
The system should be rich but not overly complicated and flexible enough to be effective in every media, use or application. And here is the most important part - you must use the elements consistently over time once you have decided what they are. This is key to memory encoding and decoding.
Monday, July 27, 2015
Brands and Memory Structures
An important role of the brand manager is to determine the memory structures associated with the brand so that marketing communications can reinforce and leverage these structures. Also, potentially useful new brand associations can be discovered in the process.
For instance, Bush beans might be associated with summer, picnics, grilling, family and Duke (the dog). Coke might be associated with its bottle shape, the color red, the beach, parties and nightclubs. A pizza brand might be associated with cheese and tomato sauce, family and friends and watching sports on television. Hallmark's greeting cards are associated with holidays, special occasions, family and friends. But they also are associated with candy and flowers among other product categories.
Everyone knows McDonald's arches and Nike's swish. Most people associate Harley-Davidson with the sound of its engine. Many people associate Tesla with Elon Musk and batteries and alternative energy. People associate Cinnabon with the cinnamon scent. Many brands are associated with fond childhood memories or with sex. What is Old Spice associated with? How about Dos Equis? ("Stay thirsty, my friends.") GEICO?
The trick is to discover all of the items people associate with the brand so that those associations can be reinforced, built upon and used to help people recall the brand associated with not only marketing communication and the brand identity itself, but also with specific relationships, occasions, complimentary products and other memory triggers.
If you have not identified and mapped out your brand's memory structures, you need to do so. it will help with the effectiveness of your advertising and your brand's identity system.
Labels:
advertising,
brand associations,
brand identity,
Bush,
Cinnabon,
Coke,
Dos Equis,
Elon Musk,
GEICO,
hallmark,
Harley-Davidson,
marketing communication,
McDonald's,
Memory structure,
Nike,
Old Spice,
Tesla
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