Corporate Eye

...compare, compete, excel

Archives for 2011

Bloggers Give Brands Sales, Promotion, and Publicity

It’s no secret that influential bloggers can motivate their audiences to think or act in certain ways. That’s why brands are starting to embrace bloggers as vital to communicating on a more personal level with their target customer audiences.

In fact, Erin Griffith of AdWeek goes so far as to call fashion bloggers “the future of fashion branding.” It’s probably safe to say that influential bloggers are the future of most consumer brands, not just fashion brands.

Bloggers give brands direct access to engaged and interested audiences of people whose demographic profiles can usually be discerned fairly easily. Brands as diverse as Valentino to Juicy Couture have successfully worked with fashion bloggers to reach their audiences. Whether the goal is to promote events (like Valentino) or massage brand perceptions (like Juicy Couture), the results are the same — relationships are built between brands and key audiences.

Most influential bloggers with large audiences are very particular about the brands they’ll write about, talk about, endorse, or help to promote. These bloggers are likely to turn down lucrative advertising offers that could damage their own brands in their readers’ eyes. Therefore, when a trusted blogger does endorse a brand, it gives the brand a vital boost of credibility that advertising alone can’t buy.

Griffith describes the blogger opportunity like a celebrity spokesperson endorsing a brand but better. She writes, “[Fashion] brands could hire a celebrity spokesperson. Instead, they’ve hired a celebrity spokesperson who has her own distribution channel.”

For brand managers who are still wary of working with bloggers, it’s time to move out of your comfort zone and start building relationships with the people who already invested the time, money, and sweat equity to build relationships with your target audience. I’m talking about bloggers whose readers match your target customer audience. The best bloggers are ready to talk to brands about strategic goals, audience demographics, conversions, click-through rates, and all of the other metrics you need to nail down before you can invest in a new marketing tactic.

This is no longer an audience of people blogging in their spare time. Many of the best bloggers view their blogs as businesses and their readers as customers. Often they’re fiercely protective of their readers, and its those bloggers who will give your brand the type of positive exposure it needs. Take the time to do your research and find the best, influential bloggers who have the attention of your target audience. Don’t force your brand on the blogger or their audience. Instead, look for ways to partner with bloggers to improve both your brand and theirs.

Image: felixo2

Brands Not Impressed with AOL-Microsoft-Yahoo Ad Sales Consortium

This week, AllThingsD broke a story that made media buyers sit up and take notice. However, not all of the noticing was positive. It seems that AOL, Microsoft, and Yahoo! are planning to ban together. In an effort to compete against Google and ad networks, AOL, Microsoft, and Yahoo! are rumored to be planning to sell each other’s display advertising inventory

In a nutshell, if one of the three companies receives a display advertising order that it cannot fulfill, its salespeople will fill the remainder of that order with display ads from the other two partners’ inventory rather than going through third party ad networks. The deal should help AOL, Microsoft, and Yahoo! retain more ad revenues than they do when they rely on third party ad networks to backfill incomplete orders.

The three companies also hope that the new partnership will make it more attractive for advertisers to buy ad space directly through them rather than through ad networks. Of course, AOL, Microsoft, and Yahoo! make more money when they cut out third party networks, so the partnership has the potential to benefit all three companies if it actually works. Remember, these are three large, slow, and challenged companies. Can they work together successfully?

On the other hand, AdWeek reports that brands and advertisers are not as excited about the new AOL, Microsoft, and Yahoo! consortium as the three companies might have hoped. Media buyers wonder how the new partnership will actually help them. They question whether the benefits are strictly going to come in the form of increased revenue for the consortium or will buyers receive added value beyond the “convenience” of buying through a single source. For large media buyers, that “convenience” isn’t a big selling point.

AdWeek also provides insight from Forrester Research  analyst Joanna O’Connell who believes the partnership is just a short-term step that is more of a band-aid solution rather than one that holds great strategic potential.

At this point, AOL, Microsoft, and Yahoo! aren’t talking. They haven’t confirmed their partnership plans, so media buyers, advertisers, brands, and competitors can only speculate. The question everyone is waiting to get answered is will these three companies be able to successfully pull this partnership off and how will advertisers and media buyers benefit from it? We’ll have to wait and see what the answers to those questions are once AOL, Microsoft, and Yahoo! come clean with their plans.

What do you think of the rumored AOL, Microsoft, and Yahoo! consortium? Leave a comment and share your thoughts.

Image: ilco

Which Are the Most Active Companies and Brands in Social Media?

This week, Dachis Group unveiled its Social Business Index which ranks 20,000 companies and 26,000 brands based on their social media activities. The companies and brands in social media ranking is updated every 15 minutes and a rolling ticker on the Social Business Index website displays real-time stats just like Wall Street stock prices.

The Social Business Index allows users to sort the ranking information by company, brand, industry, region, business size, ecosystem (i.e., two-way conversations), and subsidiary. For quick updates on the big movers and the top performers at any given moment, the site’s home page offers quick snapshot lists. Of course, you can also dive in deeper to get more data and slice and dice it for your own analysis.

The rankings are determined using publicly available information as well as data that Dachis Group purchases from other companies. As you might expect, big companies and brands in the online and social media space like Facebook and Google rank high. However, as you dig past those big names, you can find some really interesting information in the Social Business Index (you do have to register for a free account and sign in to see the full list).

As I write this article, the following companies and brands hold the top 20 spots as the most active in social media:

  1. Facebook, Inc.
  2. Google, Inc.
  3. News Corporation
  4. Wal-Mart Stores, Inc.
  5. Coinstar, Inc.
  6. Time Warner Inc.
  7. Adidas AG
  8. The Procter & Gamble Company
  9. Whole Foods Market, Inc.
  10. Nike, Inc.
  11. The Walt Disney Company
  12. Buffalo Wild Wings, Inc.
  13. H&M Hennes & Mauritz AB
  14. American Eagle Outfitters, Inc.
  15. Best Buy Co., Inc.
  16. Burberry Group plc
  17. Forever 21, Inc.
  18. Nokia Corporation
  19. PVH Corp.
  20. Industria de Diseno Textil, S.A.

Some industries rank better overall in the social business index than others. Internet content providers, Internet search and navigation services, book publishing, media, and movie theaters take the top five spots in the ranking by industry.

This is a great tool to track which companies and brands are doing great things in social media. You can zero in on your industry or region and benchmark companies and brands that rank high on the Social Business Index. Keep in mind, the Social Business Index just launched, but with Dachis Group behind it, I suspect it will grow and get even better in the near future.

Image: DarkSide

Brands Find Success with Mobile Coupons

Mobile marketing is it these days, and brands are aggressively experimenting with the available mobile technology to connect with consumers when they’re on the go — particularly just before they make a purchase and while they’re making a purchase.

Currently, a widespread, easy, and convenient mobile coupon distribution system is lacking. In other words, brands can make coupons available through mobile applications, mobile websites, text messaging, and so on, but it can still be challenging for consumers to redeem those coupons.

While it seems to consumers that it should be easy to use a mobile coupon, Tiffany Tan of Clorox Co. explained to eMarketer, “the reality is that most retailers where consumer products are sold don’t have a universal coupon reader system at the point of sale.” Tan is confident that technology advances will catch up to consumer demands related to mobile couponing. She gave eMarketer her list of what her team would love to see in the future of mobile couponing:

  • The ability to target based on prior purchases
  • A mobile coupon experience that happens at the shelf

Chris Duncan of OfficeMax offered another perspective on mobile couponing to eMarketer. Currently, OfficeMax uses mobile couponing as part of its loyalty program that ties into its mobile app. Duncan’s views on mobile couponing challenges differ from Tan’s. Looking at mobile coupons as a loyalty driver and reward system, he views the challenge not as technology but in “getting engagement from a critical mass.”

Duncan sees the advantage to mobile marketing as its speed, but OfficeMax views mobile as a complementary part of its broader couponing and marketing strategies where mobile often becomes a component of a larger marketing effort that includes all channels.

Regardless of which view point you support related to mobile marketing and couponing (or if you have a different view on mobile marketing entirely), there is no denying that mobile is where consumers are and brands need to be there, too. There is no recipe for success yet, and technology is continually changing. As Tan told eMarketer when discussing the Clorox target audience of mothers, “With over half of the population on smartphones by the end of this year, we want to make sure that we are everywhere she is.”

The question for brand managers is this — is your brand everywhere that your target audience is?

Image: bydwiel

The new GRI on the block

New GRI on the block

Think GRI, think the Global Reporting Initiative in Amsterdam whose G3 framework has become the de facto standard for large businesses to report their sustainability against.

However there’s now a new GRI on the block, and I don’t mean the G4 framework which is due to be published in 2013.

The Glamis Research Institute is a Mauritius based business and academic research foundation and is part of the same group of companies as Glamis International, an education provider partnered with a number of UK academic and business establishments.

This institute has released its own sustainability model which, rather cheekily, it’s trademarked as the GRI Sustainability Model.  To differentiate from the GRI, I’ll refer to the institute as GResI.

At first glance, both Glamis International and GResI raise certain concerns.  They look like quite a small operation and the websites of both are sparse in places.

However the GResI Sustainability Model is worth looking at because it draws together various aspects in an approach I’ve not come across before.

[Read more…] about The new GRI on the block

Why Most Companies Look and Sound the Same

A guest post today by Roderic Michelson discussing how to distinguish your company from others. What is your USP?

Everyone is saying the same thing – and no one is listening.

That’s the reality in most industries. Everyone is copying from everyone else until everyone looks, from the customers’ perspective, exactly the same.

When this happens the only way to choose is on price or by whatever you have seen last on TV.

In this situation it’s tempting to throw money at marketing in the hopes of differentiating yourself. But if you’re not saying anything different – then no one will notice.

And this applies whether you’re spending £40 a month on promoting yourself at a networking meeting, or £4million a month on cross media marketing campaigns. The same is true for corporate communications. I have written corporate copy and by the time it is reviewed by 10 other people “just to make sure,” plus the legal team, the message becomes bland, unremarkable and faceless. Unless you have a distinctive voice you won’t be remembered and your customers will have no reason to choose you over the competition.

It sounds simple – and obvious. So why do most companies fail to stand out? Why do you forget an advert moments after you’ve seen it, or forget a person minutes after you’ve met them? It’s because they aren’t distinctive.

What can we learn from the companies that have managed to stand out from the crowd – those companies that would immediately spring to mind for a certain product or service?

The one thing they all have in common is a unique voice.

Essentially they present themselves in a distinctive way and in a manner that ticks all the boxes for a particular audience or niche in the market. This is important whether you are talking face-to-face with a prospect or buying ad space in the mass media.

To have a unique voice you must position yourself as the best choice for a particular segment of the market through a Unique Selling Proposition, or USP. This is a succinct phrase that relates the most desired outcome your prospective client wants.

For example if everyone else is pushing how lightweight their product is, then make yours stand out on styling, or if they are all selling style then highlight how yours can be personalised. Choose something that’s different. But beware – if that difference doesn’t speak to your customers then you still won’t stand out!

It will significantly improve the marketability of your product or service by addressing a recognised need or pain point for the prospect. This achieves two goals with the same effort: it builds both sales and your long-term reputation. It infuses with meaning every single marketing vehicle – internet collateral, telephone scripts, business cards, ads, the annual report, etc. A USP helps you pre-open customers’ and investors’ wallets.

Let’s look at some examples:

  1. The inexorable rise of Kiton, the Naples-based Italian menswear brand is simply amazing. What is the secret of its success? A persistent, well-thought out campaign emphasising the company’s values which are embodied in its USP: attention to detail, specially designed raw materials, the best cut, artisanal craft. And the USP is present in some form and shape in every piece of communication/material from the company.
  2. With a loyal following at home, built over 300 years, Twinings is one of the quintessentially British brands. It keeps growing abroad and it’s now sold in over 100 countries. What makes people in non-tea drinking countries choose Twinnings when they want tea? Their USP: Proper tea steeped in tradition, a little taste of Britain.
  3. What are the first three names that comes to mind when you think of consulting? One of them will surely be Accenture. Starting from a white sheet after its split from parent Andersen, the company experienced impressive growth in a very tough market riding on a simple formula: delivering high performance to its clients. The USP: Innovation, current business improvement, delivery focus, leapfrog the competition.
  4. The need for fast, timely and secure delivery of important documents grew together with globalisation and international trade. Enter Federal Express, a courier company with appetite for growth and an outstanding USP: When it absolutely, positively has to be there overnight. The rest is history.
  5. Finding a consistently good blend of coffee especially for espresso-based drinks is not an easy task. But there is a solution. Illy Coffee is well on its way to become the first global brand coffee in the world. Their marketing is based around: outstanding taste, authentic Italian experience in every cup, the choice of connoisseurs and coffee lovers.

Your USP is the distilled essence of what you are offering and what your company is about. Your USP should be so compelling that it can be written on a board in front of your shop, if you had one, and can be quoted when meeting potential customers.

How to create a USP? Follow me step by step as we create a USP for a slimming herbal tea.

Step 1: Write down the list of benefits that your product/service offers

They could be centred around your price, technical excellence, taste, specialism, exclusivity.

Think about the end result your customer wants from such a product. The best way is to pair each feature of your product with the benefit it brings. So let’s illustrate…

The new Slim Pam is a great tasting product. Is that enough? No. Let’s dig deeper.

It is 100% natural, organic, acts fast, one has to eat reasonably but no dieting is required while taking the product, has a nice taste, uses roses from the famous Valley of the Roses, it is easy to use as it is offered as a tea and it has a long-lasting effect. Which three of these will you choose? Stay with me for the answer below.

Step 2: Quick market research

Sit down at your computer and find out who your most prominent competitors are. What are they saying on their web sites, in their marketing materials, in their ads? Which benefits do they emphasise? What are their messages?

Again, try to match product features to their stated benefits. Once you compare your own notes to competitor messages it will be easy to fine tune your own positioning so you have a unique voice against the rest of the market.

Step 3: Look at areas of underperformance or customer needs/pain points in your industry

Which of these are addressed by your product? Make sure your USP ties in with a market need. In our example, most people who want to lose weight, go through different diets and exercising routines. Very often, after the diet is over, they regain weight. And most people don’t have the self-discipline to stick to the diet or go to the gym regularly. So Slim Pam offers a more effortless way to lose weight and has longer effect.

Step 4: Strengthen your claims, if you can

Do you have some proof, testimonials, research results to overcome the apathy and scepticism of today’s over-marketed consumer? In our example, Slim Pam was developed by a medical doctor doing research and has been used since the early 1970s in Europe.

Step 5: Synthesise your USP into one to two sentences

Write down and rework versions until it sounds right. Don’t assume you will do it in one sitting. The USP should answer the customer’s question “why should I choose your product?”

One possible version of Slim Pam’s USP could then be: Fast-acting and easy to prepare slimming tea with long-lasting effect.

These are the mechanics illustrated with a simple example and they will help you define the USP but let’s continue looking for more ideas.

If your company is more than 20 years old there must be interesting angles in its history. How was it started? Who started it? What was their thinking and philosophy? Any memorable dates? Any past or current celebrity or famous person using/used the your products in the past? If you are a multibrand company, and you are managing/supporting one of them, where did the brand originate? What was the original vision? Why did the brand succeed?

As an illustration, look through the Jim Beam European campaigns of the last five years. They are a brilliant example of weaving a USP into a heritage theme.

Or for a comprehensive example of a USP used throughout all types of corporate materials, go to www.accenture.com and look at the materials aimed at different internal and external audiences.

Your USP is not a simple slogan or tagline. It is the mainstay, the common thread of all your communications and no message should go out from your business without your USP in it, or emphasising one of the elements of your USP.

Your USP will spark interest and single you out as the best choice in the eyes of your investors, customers and employees.

About the Author

Roderic Michelson is a growth expert for Aralex Consulting Ltd. Roderic’s expertise is in being able to assess quickly a company’s growth potential, as well as areas for improvement. Working closely with his clients, he helps them prepare and implement a project plan to position them for sustained growth.

Roderic holds an MBA from London Business School. He is author of “The Recession-Fighting Guide” and publishes the Business Growth Blog. Roderic is also frequent speaker to professional groups across London.

Roderic can be contacted at: rm@aralex.co.uk / www.aralex.co.uk.