I recently finished reading the Cluetrain Manifesto and I wanted to share a quote from the book.
“Positioning is about discovering who you, as a business, are — discovering your identity, not inventing a new one willy-nilly. Positioning could help a company become what it is, not something it’s not (no matter how cool it would be).”
Hopefully you’ll take this quote and give it some serious thought. In my career so far, I am yet to work at an organization that really puts this to practice. It’s sad to however see organizations trying to be someone they think the market wants them to be. Unfortunately it just doesn’t work like that.
If you’re trying make a mark in an industry, think again about who you really are as an organization before coming up with positioning statements and strategies that don’t truly represent you.
Marketing Commentary by .
Is anyone else out there confused about what ESM is trying to achieve?
I’ve been hearing about the restaurant having a makeover, possibly undergoing a re-positioning for a while now. I personally noticed that they’ve removed a lot of things in the decor (such as the changed logo – the statue of liberty has vanished) that initially allowed for an easier connection to Little Italy in New York.
Marketing Mag recently wrote about these changes (once again…! I remember reading a very similar article last summer as well in the Magazine) and talked about their new 30 sec spot. I personally compared it to the old video (see below) and I must say, they’ve done a really lazy job – pretty much the same visuals with a slight difference.
I’m also constantly left confused about how they’re trying to position themselves (I’m not a big fan of companies that try to be all things to all people). So, are they trying to go upscale now (again, not an easy task going from mid to high)? They’ve certain gotten a lot more calorie conscious and ad’s seem to portray a little more sophistication.
Finally, having visited one of the restaurants in Toronto recently, I felt that the company might have been better off concentrating its resources on improving the overall customer experience (at various touch-points, one of which includes reducing the serving time and ensuring that the food is served hot!) rather than executing a hap-hazard marketing program.
Here’s the older version.
and the new 30 sec spot.
http://qml.quiettouch.com/files/publishing/marketing/MarketingDaily/2009/ESM_0619.wmv
(I wasn’t allowed to embed the video)
Marketing Commentary by .
I have just completed an MBA and the funny thing is that throughout the course I was made to believe that Line Extensions were actually a good thing in the marketing world – they made use of the built up brand equity of the parent brand, they were efficient (required less ad spend) and overall, just seemed to work fine. Well, fine until I was recommended a book called “positioning” by a colleague of mine. For those of you who haven’t had a chance to read this book, I strongly recommend it. It’s a classic!
An example of a failed line extension
Success achieved after creating a new brand
Positioning teaches us that line extensions typically lead to significant short-term gains that eventually wither away. Seldom do line extensions occupy the top position in a market without toppling/cannibalizing a brand’s previous position. A great example of the failure of line extensions is the “Alkaline” version of Eveready, which failed in the marketplace until the company finally realized the problem and created a new brand called “Energizer”. Basically, this book has opened my mind and I think it might do the same for you.
Marketing Commentary by .
The new brand image of the STM
The Montreal transit system (Société de transport de Montréal) is currently in the process of rebranding itself. The STM doesn’t want to be known as yet another city transit system. It wants to establish a position in the marketplace that is not only unique but also helps build an emotional connection with the consumer; hence the tagline – ”Society in Motion”. I personally think this is a great idea. I blogged on the shift in consumers’ cultural conditioning a while ago and I think this new brand identity fits very well with whats prevelant in culture today. Consumers’ will be a lot more receptive to such ideas now and if executed well, this new brand image is bound to build some great customer loyalty and increase transit usage.
For more, check out www.societyinmotion.org
Marketing Commentary by .
Jul 10
8
Why McDonald’s is getting it wrong.
McDonald’s seems to be trying to re-position itself. We can already begin to see changes in the menu (the addition of healthier items) and ads featuring what could only be imagined as cultured, urban, hip women getting together to eat a healthy meal at the restaurant.
But it won’t work.
Okay, I concede that they might end up selling some of the new items on the menu, but the company’s brand position will NOT CHANGE. Here’s why:
McDonald’s core consumers don’t really care
I like to think of McDonald’s consumers as consisting of 2 distinct groups. The first group is comprised of loyal customers who eat at the restaurant chain multiple times a week. McDonald’s doesn’t make it’s revenues because it sells healthy food. It makes money because it sells freakishly yummy food at a very reasonable price. The restaurant chain’s loyal customer doesn’t go there to eat oatmeal. Just sayin’.
The second group, I like to call the “gluttonous healthy urbans”. For this group, McDonald’s is all about the ability to indulge, once in a while. This group cares about eating healthy and lives a lifestyle where it’s not exactly considered “cool” to eat at McDonald’s…or meet someone there for a meal. So this whole visual of urban, professional women eating a comparatively (they do use dressing on that salad!) healthy meal at the restaurant doesn’t really work for me.
[Yes I know, kids make up a key segment for McDonald's but the purpose of this blog post isn't to talk segmentation.]
Here’s how McDonald’s should be approaching this
1. Conducting an ethnographic study of consumers at McDonald’s
The key to understanding the various personas (groups of people who share common characteristics/buying patters) is to totally immerse oneself in the sub-cultures of those who visit McDonald’s. It’s the only way to truly understand the motivations of different types of people who eat at the restaurant chain. Unfortunately, an anthropological study requires forward thinking marketing executives, patience and quality ethnographers (all of which are highly lacking in most companies today).
2. Using the results to develop programs, menu and ambiance changes that enhance the customer experience
Here’s a simple example: If McDonald’s understood that the only reason I visit the restaurant is to indulge and seek instant gratification, their menu would’ve included optional ingredients that could make my indulgence experience slightly healthier (and possibly make me want to visit the chain more often).
Similarly, knowing that Sunday morning “Egg McMuffins” are considered one of the best hangover remedies among party-goers might make the chain act differently and develop programs, campaigns and promotions that are culturally relevant.
You with me? How do you think we can make organizations understand the importance of cultural immersion? How can we make organizations more relevant and engaging to consumers?
Posted in Marketing Commentary by Ujwal Arkalgud. 3 Comments