You are viewing Aaker on Brands blog posts from July 24, 2013 through September 25, 2013. You can also view the most recent posts.
Taco Bell, Ad Age’s Marketer of the Year, was recognized for their brand’s incredible turnaround. In 2011, Taco Bell sales declined by 1.4% in part because of a January lawsuit alleging that their beef taco was not really all beef. In 2012, the brand came roaring back with store sales up an astounding 8% and the momentum continued in 2013. How did they do it? The answer is threefold: wildly successful product innovation, a radical new brand position around “live mas” (live more), and a creative social media program with a host of tentacles.
September 25, 2013 • Permalink
How does an emerging market brand break into the US and other major markets? Try diaspora marketing, advise Nirmalya Kumar and Jan-Benedict E. M. Steenkamp in an October Harvard Business Review article. Diasporas are groups living away from their birth countries such as first-generation immigrants. The idea is to market your brand to a group that is familiar with and has an affinity for offerings that come from their home country. When that group provides a sales base, it gradually expands to people connected to the diaspora and finally to a broader market. This strategy avoids the often unfeasible attempt to build a brand on foreign shores from zero.
The diaspora strategy not only provides a solution to a tough problem for many brands. Firms attempting to engage in brand extensions can learn from these ideas. Look first…
September 18, 2013 • Permalink
Neural marketing, which involves techniques such as fMRI (functional Magnetic Resonance Imaging) or EEG (electroencephalogram), is a hot topic in marketing. It can purportedly generate insight into consumer response to marketing variables while reducing the biases inherent in asking consumers their opinion, such as when they are not able or willing to give valid answers to questions involving perceptions, attitudes, or behavior. Further, consumers are driven in part by subconscious thoughts and emotions that neural marketing techniques can access. There are estimates that 95% of all thoughts are subconscious.
Neural marketing, in the right context, can measure variables like attention, engagement, emotion, pleasure/liking, and memory. Each of these can be an extremely relevant dependent variable of interest when testing or evaluating many marketing stimuli.
Here are several interesting…
September 11, 2013 • Permalink
In the late 1980s, brand equity was just emerging as an important idea. In 1991 I published a book, Managing Brand Equity that defines brand equity and describes how it generates value. This model provided one perspective on brand equity that is worth another look now over twenty years later.
I defined brand equity as a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service. Connecting “brand” to the concepts of “equity” and “assets” radically changed the marketing function, enabling it to expand beyond strategic tactics and get a seat at the executive table. Marketing was reframed by an avalanche of researchers, authors and executives who provided substance and momentum to this idea.
September 4, 2013 • Permalink
My next book, Aaker on Branding: 20 Principles that Drive Success will be released later this year. It will present the 20 essential principles of branding that lead to the creation of strong brands and brand portfolios. It provides a checklist of strategies, perspectives, tools and concepts that represent not only what you should know but also what actions you should take. At 200, pages it provides access to my perspective on branding in a very compact form.
But before the book is released, it needs a cover. Cover design is fascinating. Just peruse Amazon or any bookstore and consider the variety of concepts. In doing that exercise many times, I have come up with a few “truths” about cover design. But with every rule comes an exception, and I have no explanation for some of the huge best sellers that seem to violate the rules I’ve discovered.
I look for three things in a cover.…
August 27, 2013 • Permalink
Is your brand-building effort effective? Is the budget spend effective? In my first branding book, Managing Brand Equity, I identified indicators that brand-building was misdirected, mismanaged, or underfunded--problems that are increasingly relevant today. With a few edits, here is the list.
- Managers cannot identify with confidence the existing brand image, its strength, and how it differs across segments and over time.
- Knowledge of levels of brand awareness is lacking or imprecise, and the visibility of the brand among segments is just guesswork.
- There is no in-depth understanding of the basis for customer loyalty or of how it is lost or reduced. A systematic, reliable, sensitive, and valid set of measures of customer satisfaction and loyalty by segment is
August 21, 2013 • Permalink
Storytelling succeeds. Stories are more attended to, more memorable and more impactful than any other type of communication. For an example of a brand that has found and leveraged stories successfully, take a look at Charity: Water.
For example, one of their most popular videos tells the story of the water crisis in Africa and other emerging countries. They brought the story to life through images of women and children carrying 40-pound containers of water for hours a day - trips that are dangerous and time-consuming. Worse, the water they collect is polluted and responsible for sickness and death, particularly among the very young. The story relates this problem to education, work and entrepreneurship, as that valuable time and energy hauling water takes away from…
August 14, 2013 • Permalink
McDonald’s is addressing a new relevance problem among the key 18 to 32 year old demographic that wants freshness in their fast food fare. Their “solution” is the McWrap, a freshly prepared sandwich wrap. The tortilla-based wraps contain sliced tomatoes, spring greens, shredded lettuce and even cucumbers, a first at McDonald’s, together with chicken, cheese and sauce. The wraps are prepared to order and the vegetables are indeed fresh. The problem is that there is a difference between fresh food and a fresh experience.
McDonald’s has had some success addressing other relevance issues in the past, though it took years to get it right. The unhealthy stigma was somewhat softened when they developed, after a lot of trial and error, a set of salad entrees plus some fruit and yogurt items developed especially for kids. The competition from Starbucks was neutralized with McCafé. Will McWraps…
August 7, 2013 • Permalink
Desktop computer sales are declining while tablet and laptop sales continue to skyrocket. There are predictions that the desktop will be soon be history, based in part on projecting real purchasing trends and in part on an assessment of the technology and uses of the alternatives. Microsoft’s Chief Evangelist Steven Guggenheimer was quoted as saying that over time, the desktop is likely to go away altogether, though he expressed uncertainty about the pace of decline. He has a lot of company in his analysis.
But it’s problematic to make predictions about products that appear to have been overtaken and made obsolete by innovations. There is a tendency to underestimate their functional benefits and the tenacity of the core of committed…
July 31, 2013 • Permalink
The retail revolution is here. The online retail force has finally arrived, and the results are dramatic.
Retailing sectors that are most sensitive to online competitors are downsizing. That set includes book sellers (Borders), video stores (Blockbuster), consumer electric stores (Circuit City), office supplies, stationary/gift shops, and big box stores. Chains are going out of business or dramatically downsizing the number and size of stores. The fact is that online competitors often have lower costs and a wider selection. Big box storefronts are being replaced growing retail concepts such as fast-food and fast-casual restaurants, fitness/health clubs, dollar stores, thrift stores, medical services, automobile services and wireless stores. The retail revolution is here, but the number of retailers, on average, is not declining.
The retail sectors that are less sensitive to online competition…
July 24, 2013 • Permalink