Archive for September, 2010

BRANDING WHEN EVERYONE IS GOING ONLINE!

Thursday, September 23rd, 2010

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With the announcement of the impending bankruptcy of Blockbuster, it seems that there are a number of companies, and, for that matter, industries, that may bite the dust as a result of consumers going more online to complete their transactions. While movie rentals make a lot of sense as an online product, there is still an opportunity for companies to build loyalty through an effective brand strategy and execution on a consistent basis.

One of those industries is travel—and there probably hasn’t been a category that has been revolutionized by the Internet as much as this one. Whether it’s airlines, hotels, car rentals, cruises, or vacation resorts, almost everything necessary to “purchase” the service can be done quickly and easily with a few keystrokes. Now if we can just push “escape” and be transported to our destinations, we would have it all under control. Unfortunately that isn’t going to happen any time soon so the need for personal service and brand loyalty is more important than ever. While we have a number of choices in making our travel plans—from the direct company websites to the many travel consolidation sites out there—there is still a need to have a source for information and help to make the right decision. We still want an expert to give us the advice that can, not only make the trip more productive and less stressful, but also we still want to be sure that we aren’t paying too much.

This need is where the companies must make their sites as helpful and as easy to navigate as possible with information and follow up to make sure that you are comfortable with your plans and arrangements. I recently was interviewed by marketing consultant, Terry Brock, for a client of his (travel agents) and you can view those comments by clicking on http://www.youtube.com/watch?v=jqCH_2NjDj8

Certainly this is an industry that has been reeling from all the changes, but it has survived. I believe the reason is that despite all the technology at the consumer’s fingertips, they still want help to relieve them of the emotional stress of travel before their departure. Sometimes this is still a real person, or more often than not, it may be a user-friendly program that makes it easy to get the information and the reservations. I personally use Travelocity as my basis for travel not only because I’m used to it, but because my profile is already loaded and my preferences are in place. More important, however, is the follow up and verification that automatically appears even if haven’t confirmed the trip yet. I also use Hotwire, Kayak, and the dedicated sites to check price, but the brand preference keeps me coming back to Travelocity.

We still have preferences to certain brands. Southwest has consistently reinforced its brand to become the nation’s leading airline. Hilton and Marriott have established several brands to appeal to a variety of travelers’ needs. Enterprise has grown to the top of the car rental business through its personalized service. It’s still all about differentiating your brand by creating a distinctive value and then following it up with a personalized service—either in person or online.

CHANGE—AN ESSENTIAL FOR GREAT BRANDS

Wednesday, September 1st, 2010

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I’ve talked a lot in these articles over the years about the need for consistency in developing and maintaining a successful brand strategy. There’s no doubt the brands that have the most equity with their customers also are those that adhere to the strategy with every decision made. Whether it’s the marketing message or the product design, it’s important to maintain a unified front in all aspects of the brand’s execution. Unfortunately, many companies adhere to strictly to the adage:
“If it ain’t broke, don’t fix it.” In doing so, they often ignore the changes in customer trends and expectations as well as changes in the economy and the competitive marketplace.

I’m reminded of a Wall Street Journal article I read not long ago about the taxis in Mumbai, India. For years, the streets have been “served” by a collective fleet of over 50,000 cabs and over 200,000 taxi drivers. To say that most of these taxis are uncomfortable would be an understatement. The black and yellow cab is as much an icon in Mumbai as the yellow cabs of New York City. However, the fleet is made up mostly of a model called the Premier Padmini—a version of an Italian Fiat model which ceased production in 1966 or the Indian manufactured version, the last of which rolled off the production lines locally over 10 years ago. They are uncomfortable, non-air conditioned (something I can’t imagine in Mumbai) with scrap metal patches and parts to keep them on the potholed riddled streets with suspensions that gave out long ago. This leaves the passengers in almost as bad a mood as the veteran drivers who insist on keeping their old cars in service.

Competition has picked up with newer, more comfortable cars driven by courteous drivers who will take appointments, provide air conditioned comfort and a much happier clientele. However, the old line is resistant to change insisting that the old jalopies are more economical and part of the Mumbai street scene. The veteran drivers prohibit the new taxis from cueing at the most desirable street corners. They block gas stations so that only older cabs can refuel. They even physically attack the new breed of drivers to intimidate them in a way that a gang of hoodlums protect their territory.

The customers? They overwhelmingly would prefer the new taxi service, but they too are intimidated by the older drivers and fear for their safety. In fact, the new fleet receives over 10,000 calls a day for reservations. The issue has gone to court to allow free competition and calling for enforcement of the law to prevent further violence, or at least the intimidation.

While this may be an extreme example,it does demonstrate that companies often ignore the desires of the customers in order to keep doing what they’ve always done. It’s easier, more comfortable, and less chaotic to simply sticking with the same old, same old.
Today’s successful brands ignore the challenges and instead develop their plans to grow by keeping up with the changes in customer demands and expectations. To beat the competition, we can’t resort to roadblocks or intimidation; we have to exceed those expectations and stay in front of the competition with better marketing and better branding. Kodak had to change from a brand built on film and processing to one on the cutting edge of digital technology. Google could have stuck with being the world’s largest search engine, but change brought online videos, social networks and more. Apple could have stayed with a strong product brand, but retail brought change that helps both the customer and the products. The brands that are in an ongoing state of change and modification—based on what the customer wants—are the ones who continue to grow and succeed. While Mumbai’s citizens suffer through an antiquated system of transportation, the newer, more comfortable brand of taxi is slowly but gradually changing the landscape and providing a long-awaited change.