Corporate Eye

...compare, compete, excel

Archives for 2010

Brand Buzz Influences Perception as Holiday Shopping Begins

holiday_sale_1The biggest shopping days of the holiday season are coming, and retail brands are fighting for attention, wallets, and buzz.  YouGov has been tracking brand perceptions among an audience of 1.5 million consumers of which the organization surveys 5,000 people daily. A recent study was designed to learn how women with children under the age of 18 feel about brands as the holidays are approaching.

So which brands are on top in terms of positive consumer brand value perceptions based on the brand buzz around them?  According to YouGov (as reported by BrandWeek), the following brands are earning the most positive buzz:

  1. Target
  2. Old Navy
  3. Amazon
  4. J.C. Penney
  5. Kohl’s
  6. Toys ‘r Us
  7. eBay
  8. Walmart
  9. Sears
  10. Best Buy

Brands with the biggest jump in positive value perception versus 30 days earlier are Sears, Toys ‘r Us, Macy’s, eBay, and Bloomingdale’s.

Many of these brands are getting positive responses from consumers due to their big discounts and extended sales that have been rolled out earlier than ever to ensure retailers get the sales they need to wrap up a successful year.  New mobile promotions and social media marketing campaigns are launched every day as brands try to connect with the elusive digital consumer audience.

From a marketing perspective, the results analysis from these campaigns and tactics will be very interesting!  There will be a lot for retail brands to learn during this holiday season.  Returning to the “old” ways of marketing simply won’t get the job done anymore.  It makes you wonder what we’ll see during the 2011 holiday season!

What do you think?  Leave a comment and share your thoughts about brand value and promotions this holiday season.

Image: stock.xchng

Sustainability, Brittany and Corporate Greed

Three_little_pigs_-_third_pig_builds_a_house_-_Project_Gutenberg_eText_15661Once upon a time there were three little piggies, and their names were Flopsy, Mopsy, Cottontail and Peter.  And they lived with their crotchety old grandmother underneath the mushroom at the bottom of your neighbour’s garden.

Well, as the start to a fairy tale it has some merit, even if it lacks a certain originality.  Still, it’s more believable than “once upon a time, all companies traded fairly and equally with one another in a society based upon values rather than status.”

And then, so this fairy tale goes, the Big Bad Wolf came along and-he-huffed-and-he-puffed and he destroyed this value based society by pointing out that if you were mean, mendacious and plain greedy you could make more money than your competitors.

This is the fairy tale that those who advocate compulsory sustainability and CSR measures would have us believe.  But are they right?

[Read more…] about Sustainability, Brittany and Corporate Greed

Corporate Eye Summary November 20, 2010

  • The Effects of Corporate Blog Marketing
    In today’s current business climate, many companies are opting to find smarter and more frugal methods of marketing, and forgoing the mistaken idea that corporations have to spend a lot of money on their marketing ideas. Although frugal does not equate to “cheap” or “poor quality”, it does require that the company be creative and […]


  • The Board’s Role In Strategic Planning Redux
    The NYSE published recommendations on directors’ role in business strategy. Some companies are ahead of the curve.


  • Brands Try Stickybits for Creative Promotions through Mobile Apps
    Mobile marketing is so hot right now that every brand should be looking at how to integrate mobile into its marketing plan, particularly using mobile apps to drive consumer engagement with brands.  Stickybits is gaining traction among leading brands as a mobile app that can do exactly that.
    When people download the newest version of the […]


  • It Ain’t Whatcha Do, It’s The Way That You Do It…
    .. and that’s what gets results!
    This may seem a little trite for a business sustainability and CSR blog.  After all, thinking about your business’ effects beyond the simple commercial supply of product or services is the very definition of sustainability.  However, a particularly pertinent example surfaced last week.
    Archimedes Pharma is (according to their website) an […]


  • Li and Fung — Corporate Governance On One Page
    During my online journeys I’ve visited some interesting Corporate Governance sites. I found that too often I make quick judgments and that I need to take more time to assess the attributes of a visited site.
    This was put in play when I observed the Corporate Governance page of Li & Fung Ltd an export […]


The Effects of Corporate Blog Marketing

In today’s current business climate, many companies are opting to find smarter and more frugal methods of marketing, and forgoing the mistaken idea that corporations have to spend a lot of money on their marketing ideas. Although frugal does not equate to “cheap” or “poor quality”, it does require that the company be creative and savvy in choosing how they will advertise their product or services.

Marketing encompasses more than just “selling” a customer. It involves relationship-building and networking so as to establish a foundation for future interaction. If there’s anything customers dislike more than hard-selling it’s to be told that they’re “sold” to. They know the difference, and count it as an insult if they are told otherwise.

Securing customers and clients work best when the interaction is genuine and forthright. Clients tend to lean more towards those corporations who can readily admit their mistakes and take a clear stand in correcting any mishaps. However, it’s also a plus when the corporation is doing well and has the confidence to admit so.

Take for example, the Whole Foods Market blog that talks about and promotes a healthy lifestyle and green living. Their blog is very user-friendly, not overwhelming and gives a wealth of information to the customer. Consumers want and love the idea of good, wholesome foods and often need direction in where to find this fare and various ways to prepare it. This information is on their blog and can also be enjoyed by customers when they visit one of their numerous stores in the chain of markets. However, Whole Foods goes a step further by including business news on the blog that also promotes the chain’s philosophy and their stand on environmental issues. So not only do they get the chance to connect with the customers and provide valuable information, they also share, promote and encourage customers to participate in the causes that they support and promote. Rarely will you see commercials for the store, yet their presence is in many major cities across the United States as well as the United Kingdom and Canada.

The benefits of corporate blog marketing are endless, but many companies fail to embrace the positive things that it can do for their corporations, often because they just aren’t fully aware of the end-result benefits that it can bring to their businesses.

Exposure

Although this is an idea that is preached across the Internet tirelessly, many corporations still fail to see the benefit of exposure that a corporate blog can provide for their corporations. The blog serves as more than just a presence on the Internet, but gives the business a working platform to have a voice and to connect with customers in that genuine way that was mentioned earlier.

The Fastlane GM blog [now closed: see this post on some of the most significant Fastlane articles] is one such example of a blog that offers a company a wealth of exposure. Not that General Motors would need any additional name recognition, but their blog presence is a strong marketing tool because it keeps the customers connected to what’s going on in the automobile maker’s world. Each step that this car manufacturer makes significantly impacts the economy, and in turn, affects the consumer. On the blog, everything is discussed from upcoming projects to their political and social stand on various topics. The consumer is affected by this since very often, these issues affect the prices of vehicles, costs associated with production and even insurance issues. Why in the world would the consumer not be interested?

Interaction

Interaction runs the gamut from writing an email to a customer, to offering sales and discounts on Facebook. It is a very important element for any business, which is why social networking platforms like Facebook and Twitter have become so enormously popular. Customers want to know and feel like they’re dealing with real humans and not machines; blogs offer a glimpse into the driving minds in a corporation and how they’re making things tick.

Corporate blogs pick up a lot of marketing momentum when they are well-written, offer value to the customers and do a good job of engaging their readers. When the blog loses the idea of “selling” to their customers they fare far better, and position themselves better when they don’t try so hard. Also, the shelf-life of blogs is longer for those who treat the blog presence as more of an enhancement than their main method of client/customer pooling. Over time, the blog not only increases their marketing potential and worth, but it stands a better chance of positioning the corporation as a product of longevity. Customers reap the benefits almost immediately, and the company can set tangible, workable methods around the blog to increase its productivity.


The Board’s Role In Strategic Planning Redux

On Sept. 23, 2010 the  NYSE Euronext (NYX)  released the final report (PDF) of the NYSE–sponsored Commission on Corporate Governance.

One of the ten key items is —

Good corporate governance should be integrated with the company’s business strategy and not viewed as simply a compliance obligation. [Almost a year earlier our post The Board’s Role In Corporate Strategy suggested a more active Board role in Business Strategy.]

The Commission believes that sound corporate governance should be a core element of a company’s business strategy, as it includes independent and objective oversight of strategy and management by boards; alignment of interests among shareholders, management and the board; accountability of the board to shareholders and accountability of management to the board; compensation programs that incentivize long-term growth; establishment of criteria that are aligned with the company’s business goals; prudent risk management; a culture of integrity; and consideration of the impact of the corporation’s activities on society overall.

This makes a strong case for the Board’s active involvement in the development and continuing review of the company’s business strategy. Too many companies delegate the formation and execution of the business strategy to management. Further, many Boards review the business strategy once a year.

However there are some companies that are already practicing the NYSE’s recommendations.

One such company is TD Bank Financial Group. In their online Corporate Governance practices they state–

Strategic Planning Process

The board is responsible for overseeing the execution and fulfillment of our strategy and fundamental goals. This responsibility includes adopting a strategic planning process; and continuously considering and approving strategic alternatives and plans that management presents. The board assesses the bank’s major opportunities and risk impact of any strategic decision being contemplated, including considering whether any strategic decision is within the bank’s approved risk appetite established for the bank and its individual business units; oversees the implementation of strategic plans; and monitors performance against such plans.

Continuing Education

…In the past year, the board participated in in-depth sessions (“deep dives”) on particular aspects of our businesses and overall strategy. Each deep dive includes an element of general education as context for the discussions (e.g., the industry; competitors; trends; and risks/opportunities). Directors also have complete access to management to understand and keep up to date with our businesses and for any other purposes that may help them fulfill their responsibilities.

Hill-Rom

This discussion seems to be very much in line withe the NYSE recommendation. The problem is these items are somewhat buried within a lengthy document. TD would do well to highlight their Board actions regarding business strategy, perhaps discussing this in their Leadership Views in the Media Room.

Another example comes from Hill-Rom a medical products company.

The Board’s role in Business Strategy is described in a concise discussion on the (Board) Role and Functioning section within Corporate Governance

In summary:

The Board’s Role In Strategic Planning

The Board of Directors has the legal responsibility for overseeing the affairs of the Company and, thus, an obligation to keep informed about the Company’s business and strategies. This involvement enables the Board to provide guidance to management in formulating and developing plans […] Acting as a full Board and through the Board’s three standing committees, the Board is actively involved in the Company’s strategic planning process.

Each year, typically in the spring, summer and fall, senior management sets aside specific periods to develop, discuss and refine the Company’s long-range operating plan and overall corporate strategy. Specific operating priorities are developed to effectuate the Company’s long-range plan. […] These meetings are focused on corporate strategy and involve both management presentations and input from the Board regarding the assumptions, priorities and objectives that will form the basis for management’s strategies and operating plans […]

At most Board meetings, the Board substantively reviews the Company’s progress against its strategic plans and exercises oversight and decision-making authority regarding strategic areas of importance and associated funding authorizations.

In addition, Board meetings held throughout the year target specific strategies and critical areas for extended, focused Board input and discussion.

The Board’s role is inextricably linked to the development and review of the Company’s strategic plan.

From this one can see that the Board is actively involved. The Board does not simply delegate the plan to management. Nor do they let a year elapse before they receive well orchestrated presentations for management. They appear to be following a process suggested by John Rehfeld in his article The Company Director’s Role In Company Growth —

 GoalsDevelopApproveExecuteReview/Changes
BoardPrimaryActively ParticipatePrimaryStay informedPrimary
ManagementProvide inputPrimary PrimaryProvide input

Adapted from The  Director’s Role In Company Growth

While the NYSE’s recommendations are relatively new, these companies provide examples for other companies to follow.