Extreme Makeover: Brand Edition

When it comes to brands and their positioning and packaging, marketers get bored of them long before consumers even get used to them. Unlike their customers, marketers think about, talk about and look at their brand all day long. Even the most loyal customers don’t have this kind of relationship. Then, often sooner than necessary, marketers suggest a change to keep the brand “fresh.” This is a tricky thing to do, however, and often occurs long before it needs to.

A good example of this is the recent Tropicana orange juice packaging redesign. When Tropicana debuted new packaging and brand identity for its Tropicana Pure Premium orange juice, consumers responded with passionate complaints and outrage. After less than two months, the company decided to respond to their customers’ demands and return to the original packaging.

Interestingly, the sheer volume of consumer response was not the reason for the switch. According to Tropicana NA president Neil Campbell in a recent New York Times article, it was because it came from “some of [their] most loyal customers.” I think this is a great point. There will always be dissatisfied consumers, but marketers need to focus on their best and most loyal customers in order to continue to move the brand in the right direction. This is something that most companies don’t spend enough time doing.

In the article, Campbell also stated “I feel it’s the right thing to do, to innovate as a company. I wouldn’t want to stop innovating as a result of this. At the same time, if consumers are speaking, you have to listen.” While innovation is the key to keeping up with your customers, it needs to be smart and well-executed – not just innovation for the sake of innovation.

In times like these, when consumers are changing their minds and their behaviors almost hourly, marketers need to use real-time data and analytics to continue to learn about their customer-base and their evolving needs and wants. Then, when they are really ready for a change, marketers can give it to them. Until then, marketers should avoid giving their brands a makeover when their most loyal customers still love the original.

Is Smarter Spending Here to Stay?

The current recession is on everyone’s minds right now – business leaders, politicians, marketers and consumers alike. Constant reminders of economic doom in our professional and personal lives have clearly changed the way we behave. Consumers are shopping differently. They are acting more frugal, researching each purchase and avoiding impulse buys. At this point, this change is old news.

But when our economy returns to its normal, pre-crisis state, will shoppers’ behavior revert as well?

As referenced in a recent Ad Age article, this issue is on the mind of many marketers. According to the article, this recession has had a much bigger impact on people than the last big crash in 1987. People really fear for the future. Thanks to vanishing retirement funds, people are being forced to work much longer than they had ever anticipated. In fact, 40% of people over 55 are currently in the workforce – a 10 year high, according to Barron’s.

As a result, people are re-thinking about what’s important to them and, in a sense, returning to more traditional values. Their attitudes may be the same – they still want that new car – but they are behaving differently – they aren’t necessarily buying it. People are being much more practical and focusing on saving for the future.

I believe, however, that the American consumer’s mindset is not changed forever. The frivolous spending and over-the-top consumerism that was prevalent over the last 30 years may be gone for good, but people innately like to shop. Consumers will likely make more of an effort to find good deals on significant purchases, but I think that impulse shopping will continue to be a part of the American culture.

The current economic downturn may permanently impact American values and shopping behavior, but eventually consumers will return to some of their old ways.

Practice What You Preach

It is always important to practice what you preach, especially when it comes to marketing. A fundamental example of this is a direct marketing piece I created and sent out this past month.

The piece was basically a box designed to hold a cell phone with my telephone number programmed into it, as well as some written information about Euro RSCG Discovery. Recipients were encouraged to call me to discuss Discovery’s marketing and business solutions first and read the material second.

Rather than simply reading about our company, this piece got people to behave the way we wanted, right from the start. They engaged in a conversation about it, which provided a deeper, more relevant perspective of who we are. And it worked – we had a 70% response rate!

Many companies send out direct mail and expect people to read and believe everything they have to say about a product or service. At the end of the communication, recipients are urged to call for additional information. However, it typically does not work that way. Many times, recipients do not read the material and do not come away with a better understanding of the company’s offerings. Because it is a passive, one-sided communication, it is not nearly as effective as getting people to act first.

Encouraging a behavior first allowed me to connect with prospects in a different way. After the call, these people then went back and reviewed the written materials in the package and fully understood our value proposition. Our conversation made the content even more personal and relevant.

The old model of message first and behavior last is no longer effective. It is incredibly important to engage your customers and encourage them to behave first. That is the best way to serve your business.