Strategic Branding: Has Apple Found Its New “Pivot Point?”

February 3, 2010

In my branding presentations, I frequently discuss the importance of knowing your company’s “pivot point,” the common thread that runs through all your products and service offerings. Without that knowledge, companies tend to behave as commodities, and eventually get priced that way.

In the big picture, Apple has succeeded in walking to the beat of a different drummer. They have never really behaved as a “computer company,” although until just a year ago, that was their official name… Apple Computer.

At the iPad unveiling this past week, Steve Job reported that Apple was now “the world’s largest mobile device company.” Could he have just articulated their new pivot point?

Let’s look…

Are most of their products mobile?

Considering the number of laptops, iPods and iPhones they sell (in contrast to the big towers) then it would be safe to say yes.

Are they a “device company?”

That certainly takes them out of the limiting sphere of computer manufacturer.

Are they the largest?

Well, perhaps, (though Nokia might have an issue with that statement.)

My best shot at Apple’s pivot point would be to call them a “digital lifestyle provider.” That would expand them beyond the functionality and equipment positioning and allow them to incorporate music, video and e-reader services.

In pressing times, it’s more important than ever to differentiate your company, and its products and services. So before making your next move, have you thought about your pivot point? In Apple’s case, they might have just found their “core” strength…

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Apple’s iPad - Only One Chance to Make a First Impression

January 28, 2010

When the much anticipated, must-have, Apple gadget debuted this week it was met with a collective “huh?” Part of it was due to the branding. Instead of choosing a unique name that creates and/or redefines the category (like the iPod did), they went with a generic… a “pad,” as in notepad, pad of paper, ink pad, or worse (we’ll get to that later.) The problem with generic brand names is that they tend to minimize the product, and limit it to a predefined category. It’s as if people were saying “Oh, I get it… it’s some sort of electronic pad thing.” Once the brain thinks it has the answer, and knows where something fits, it tends to quit asking questions. And that’s the sad part of the story, because Apple is so great at creating intrigue and suspense. Even the rumored name iSlate would have been more imaginative than a pad.

And then there are the other issues…

• iPad sounds so close to iPod that it’s confusingly similar. Imagine if you were from Boston. The names would be interchangeable.

• Already the name has been subjected to derision by its close affiliation with certain feminine hygiene products. (Do you want the mini or the maxi?)

The initial jokes will wear off, so that’s not a big deal. What is a bigger deal is the lost opportunity cost that results from explaining/defending a name in the first few days of a launch. With a unique, compelling brand name, it may have encouraged potential buyers to inquire more deeply. A good example of this is what Amazon did with the Kindle and Barnes and Noble did with the Nook. Notice neither went with “e-reader” or some generic, functional naming solution. I realize Apple wants/needs to keep the “i” for its branding architecture. But it could have followed it with something more inspiring than a pad. As a company known for its creative brilliance, this is one brand name that fails to shine.

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Branding Basics… Should you “Google-ize” Your Logo for the Holidays?

December 15, 2009

The mantra in branding has always been consistency, consistency, consistency. But of late, I’ve been asked about logo updates, thanks in large part to the ever changing look of the iconic Google logo. Google will update their brand image for holidays, important events and historic anniversaries. Recently they had the Sesame Street characters adorning their famed font face. So is this something your company should undertake?

The answer is maybe yes… and most likely no.

The maybe yes answer depends on the amount of repeat customers you have. If your client base is a die-hard following of loyal customers, then it might be beneficial to dress up your logo (assuming it’s done tastefully) to create a little flair. And on a web site, it demonstrates that someone is paying attention, making updates, and taking action to keep things current.

The answer is most likely no, if you have an ever changing client base, or are continually reaching out to new customers. If they haven’t seen the original logo, how are they going to “get it” when you make a twist on it? It’s like telling a joke that plays off another joke. You have to know the first one to get the second one. And it’s easy to overestimate how well established your logo has become, (mainly because you see it everyday.)

So if you have a well known, iconic brand that serves a steady audience, then by all means have some fun and “Google-ize” your logo for the holidays. But for most businesses, it’s better to stay the course and build steady brand awareness.

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Is 2010 “the year” to expand your brand?

December 14, 2009

According to a number of economists, the coming year should usher in the much promised turnaround. One of the fears, expressed by our president and a number of leaders, is that businesses will have become so efficient and risk adverse, that they will resist new hiring and expansion.

That would seem prudent but could prove harmful in the long run. The reluctance to grow when the economy begins to improve is the equivalent to timing the stock market. By the time you realize that your customers are back, and buying, it may be too late to regain them. In other words, you might not have enough band width to handle the business, due to a number of factors…

• A reduced number of competitors weeded out from this down turn.

• A lack of suppliers which can help you fulfill orders

• A lack of staff to handle an increase in volume

Just as this economy caught business owners off guard and bloated with excess staff and inventory, it can do the same on the opposite side — make them too cautious to move when signs of improvement start to show. You will never have a better opportunity to gain “share of voice” for your brand than in a down market. Competitors are quiet and waiting things out. They are also hunkered down and looking for the same sustained sales results before investing in any type of growth. But it will be the businesses that can step up and meet this growth, right out of the gate, that will gain the most from the upturn. At that point, getting back in the game will require more expensive advertising.

If 2010 is “the year,” then what are you doing in anticipation of a possible uptick in business? Are you in hunker down mode? Or are you quietly lining up quality suppliers, keeping resumes current, and creating a plan of action to ramp up production in a short time frame? It’s a matter of being proactive vs. reactive, and it can happen on both ends of an economic cycle. If 2010 is the year, make sure it’s your year.

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Is Your Brand Promise Too Big?

November 25, 2009

Driving home the other day I noticed an approaching billboard with a striking statement…

“BELIEVE IN Something BETTER.”

The letters were all caps except for the word “something” which was underscored for added emphasis. Intrigued, I couldn’t wait to move forward to discover what, or who, was behind the message. Was it The Church of Latter Day Saints? The Boys and Girls Club? A new “Say no to drugs” campaign?

No… it was a cell phone company.

U.S. Cellular to be exact. You know when a brand promises too much when you feel that let down in your stomach that goes “Really? It’s all that?” I had a similar experience viewing a TV ad a couple of years back. It lured me in by saying that one thing, and one thing only, truly defined who and what we are. I had to know what could be that monumental that it could sum up our very essence. The answer?

A watch.

It’s not to say that companies can’t align themselves with strong attributes. In fact, that’s a great strategy for the positioning of a brand. But in the execution of that strategy, it’s important to ask if the promise is a realistic one. Verizon, for example, makes a more believable claim that “It’s the network.” Wal-mart played it fairly safe with “Always the low price. Always.” But of late, it shifted to “Save money. Live Better.” Is it realistic to think you are living the high life thanks to Wal-mart? I’ll let that be your call.

Dodge came out with a TV ad entitled “My name is Ram” in which images of Muhammad Ali and Albert Einstein were displayed, while they touted their vehicle as “All brawn. All brain.” It further states that it’s “built by passion… and stopped by nothing.” And “a technological marvel,” with a picture of a major suspension bridge being built in the background. The only thing missing was a shot of a shuttle launch. Pretty heady stuff for a truck.

With all the decentralization of media, the consumer has the power now to pick and choose what he or she wants to see and hear. So if your brand message rings hollow, they will tune out. In fact, if your message is not authentic, it will create just the opposite effect… one of distrust. Years ago, Ford came out with an ad campaign that touted “Quality is Job #1!” At the time, American made vehicles were anything but synonymous with quality, and saying so did not make it so. If that were true, Quality Inn would be at the pinnacle of their industry. In business, as in life, it’s always best to underpromise and overdeliver. So choose your brand names and tag lines wisely. Make sure your brand message is not only aspirational, but also believable and achievable.

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Is Your Company Having an Identity Crises?

October 26, 2009

In speaking to various business and trade groups this past summer and early fall, one theme rang loud and clear. In an effort to stay afloat, many business owners made significant changes to their business models. And these changes, while necessary in the short term, had left confusion amongst the rank and file. The common question was “Just what have we become?” Many of these companies had identities based on their industry, or their products and services. But as these industries struggled, so did the businesses that served them. Adapting to meet the sea change in the economy and consumer behavior meant trying new things, serving new customers, adopting new pricing policies. These adjustments now required some corporate soul searching.

Examples of brand positioning shifts…

• Now that we’re selling products at a deep discount are we still a “quality” company?
• We always served the “XYZ” industry, and now we’ve expanded to other customers. Are we still in the “XYZ” business?
• We’ve opened a new division, serving a new customer base. Should it still be under the same umbrella name?

In other words, businesses did what they had to do to survive, and now it was time to make sense of it all. Some of the changes proved positive, forcing companies to evolve and reconfigure their service offerings. But others have caused “brand fractures,” actions that bring in short term cash flow but betray the long term values of the organization. In the wake of all these changes, now is the time to regroup and ask the pivotal questions that will help determine the future of your brand.

• Is your corporate identity based on an outdated or struggling industry? (i.e. boats, construction, automotive, etc.)
• Have you expanded your products and services in a way that no longer fits with your brand name or message?
• Are you trying to promote quality, price and service all at the same time in an attempt to be all things to all people?

Ideally, a company’s identity should revolve around one “pivot point,” a common thread that runs through everything a company says and does. Do you know what your pivot point is? Is it based on what you do or how you do it? Are you evolving with the times or dying with your industry? These are tough questions, but not nearly as tough as facing a dead end road too late to make changes. Now is the time to get clear, get focused and take definitive steps to mold a cohesive identity that both your clients and your staff members understand.

Just as 3M transformed from Minnesota Manufacturing and Mining into a company known for product innovation in the adhesive industry, CEO’s that are clear on their corporate mission and values can lead their companies to great success. If you are having defining your pivot point, perhaps it’s time to get clear on what you truly have to offer your clients. That’s what I’ve been speaking on all summer… “Brilliant Branding.” If you’re ready to shine, it might be time to consider a brand clarity audit. We’ll work with you to clarify your mission, purpose, values and direction. And best of all, you’ll discover that elusive “pivot point” around which you can base all your decisions. Having that type of guiding light can re-focus and re-energize a company as it moves towards a common goal. And it sure beats an identity crises.

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Radio Shack - The Problem With Product Identified Brand Names

August 7, 2009

The irony of naming a new company is that the quickest fix (giving the company a literal/descriptive name) creates the most enduring problem. Witness the latest iteration in “fixing” the Radio Shack brand. To bring it current, make it relevant, and shed its legacy image of radio/transistor/gadgetry, it’s now going to advertise itself as simply “The Shack.” This is similar to Pizza Hut’s attempts at rebranding itself as “The Hut.” The problem is systemic… the whole positioning itself is based on a product (radios) and a place (a “shack”) neither of which reflects well on the brand. This is the same problem encountered by CompUSA and Books-A-Million. They based their brand on a specific narrow product channel, and then spent years (and millions of marketing dollars) trying to break out of a self defined box.

This is one of those “live by the sword, die by the sword” types of branding decisions. Product specific names are great for gaining initial traction when first starting a business. Customers know exactly what you do (i.e. sell radios in small strip mall stores, sell computers in the United States, sell a million books, etc.) But when the company grows and expand its product offerings, (as they so often do,) the very name that helped define them now restrains them. The pain killer becomes the pain maker.

The solution? Look at companies that defined themselves by an attribute, such as Best Buy. Or ones that use a metaphor, such as Target or Amazon. These names provide a more lasting base to build upon. They allow the context to identify their products (i.e. their web page, their ad, their brochure, etc.) so the name can be freed up to evoke a bigger message.

So before you name your business The DVD Barn, be sure that is the only product you will ever sell.

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We Let The DAWGS Out! (Naming a Business So It Gets Noticed)

July 6, 2009

Door and Window Guard Systems

When Jim Heagney came to us with a great new product, we knew he needed a great new name to match. Jim and partners manufacture metal security panels that bolt into the windows and doorways of empty, abandoned or foreclosed homes, as well as new construction and properties undergoing rehab. This type of home protection can save tens of thousands of dollars from break-ins, theft and vandalism. With foreclosures at an all time high, there was never a better time to launch… but what to call them? The few competitors in the field had bland, generic names for their companies, and no real brand name for their actual products.

Jim was a big admirer of one of our other company names… PODS, an acronym name (Portable On Demand Storage) that also works as a stand alone word. PODS has become the “Kleenex” of the movable storage industry, and Jim felt that with the right name, he could accomplish the same goal in his industry. So instead of calling them panels, or screens, or grids, we called them…

D.A.W.G.S. (Door And Window Guard Systems)

Like PODS, the name DAWGS works on several levels. It serves a literal function when needed, by providing a built in descriptor phrase (i.e. when asked, they can simply reply “We sell door and window guard systems!”) It also provides a memorable metaphor, a rough, tough, house-protecting “Dawg!” This conjures up a sense of vigilence, protection, guarding, protecting, and defending — without having to invoke all those words. Hence the proverbial mental picture being worth a thousand words. The name also gives the product a “handle” with an imaginative name that aids recall. Getting DAWGS to protect a house is much easier to communicate than “ordering some of those internally bolted metal door and window security panels.”

The word DAWGS, like any good brand name, then acts as a mental computer macro — setting off a whole list of associations that don’t require explanation. (For more on this subject, see “Monster, Amazon, Crocs — Why Creative Brand Names Work Best.”) So if you need a brand name that’s “off the chain” just call the bright minds at Tungsten!

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Is BING the new thing? Rebranding Microsoft Live Search

June 1, 2009

Let’s face it… Microsoft has never been the leader when it comes to cool brand names. But that might be changing. This past week, the folks in Redmond, WA announced the new name for their improved search engine… Bing! You might say Bing has a ring to it, and it’s a heck of a lot better than their previous literal/descriptive name, Live Search (as in, “Could you ‘Live Search’ that for me?”) Or Kumo, their stealth code name, which sounded more like an Alaskan sled dog.

Bing is short and (like the cherry) sweet. It has has verb potential, almost like when you “ping” something, as in pinging a server. Whether it can replace the ubiquitous use of Google remains to be seen. It’s never easy when you are trying to unseat the leader, which by the way has a fairly good brand name already. A lot of it will depend on the service itself. Microsoft has improved the name, but have they sufficiently improved the product? Enough for folks to change old, establish search habits? Moving from number two to number one takes some doing… just ask Pepsi.

Here’s what makes that question even more interesting.

According to Advertising Age, Microsoft has $80 to $100 million planned to burn that brand name into just about any brain on the planet. That amount can easily pound a square peg into a round hole. Google has never faced a direct onslaught like this, and so it will be interesting to see how they respond in kind.

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Swine Flu and the Power of Naming

May 4, 2009

For those who don’t believe that naming is powerful stuff, look no further than the latest pending pandemic, now known as the H1N1 virus. As humans, we have an inherent need to label things. It makes us feel safer if we can name something, identify it, box it in, put a handle on it. The problem comes when the need for that label becomes more important than the facts. According to the CDC, “It (”Swine Flu”) has two genes from flu viruses that normally circulate in pigs in Europe and Asia and avian genes and human genes.” In other words, it’s a swine, bird, human flu.

What difference does it make? Apparently quite a lot.

According to UPI, Egyptian authorities recently announced plans to kill 300,000 pigs as a preventative measure. The New York Times reports that consumers are not eating pork based on the misconception that they might get sick. Some farm groups are pushing to change the name to “North American influenza.” Others are pushing for “Mexican flu.” The problem is, as long as it’s called “Swine Flu,” people are going to blame swine. If we call it “Mexican flu, we’ll blame Mexico.” It’s just the way our brains work… we associate things whether we’re supposed to or not.

So why does the news media continue to do this, when they know it’s not factual? Because it’s much simpler and attention getting to say “Swine Flu” than H1N1. In fact, CNN itself has reported on the financial harm pig farmers are facing due to this mislabeling. And yet, in their story today, entitled “Confirmed cases of H1N1 virus approach 900,” the lead sentence states, “The World Health Organization cautioned that the swine flu outbreak could gain momentum…” They just can’t resist the need to use the very inaccurate phrase they reported on.

Bottom line? Words shape thoughts. Thoughts shape actions. Now, more than ever, it’s important to choose our words wisely.

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