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	<title>Brand Insight Blog &#187; CASE STUDIES</title>
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		<title>Living The Brand, Scott Bedbury Style.</title>
		<link>http://www.brandinsightblog.com/2008/09/26/living-the-brand-scott-bedbury-style/</link>
		<comments>http://www.brandinsightblog.com/2008/09/26/living-the-brand-scott-bedbury-style/#comments</comments>
		<pubDate>Fri, 26 Sep 2008 21:40:51 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[BRANDING]]></category>
		<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[DAILY POSTS]]></category>
		<category><![CDATA[brand assesment]]></category>
		<category><![CDATA[Nike]]></category>
		<category><![CDATA[Patagonia]]></category>
		<category><![CDATA[Scott Bedbury]]></category>
		<category><![CDATA[Starbucks]]></category>
		<category><![CDATA[Start-ups]]></category>

		<guid isPermaLink="false">http://brandinsightblog.wordpress.com/?p=58</guid>
		<description><![CDATA[
I met Scott Bedbury the other day. In branding circles, he’s kind of famous… Worked at Nike during the “Just Do It” years. Helped Howard Shultz build the Starbucks brand. And now he consults with a few lucky businesses and does speaking engagements all over the world. Even Kazakstan. Nice!
Bedbury’s a very genuine guy. I’m [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><!--StartFragment--></p>
<p class="MsoNormal">I met Scott Bedbury the other day. In branding circles, he’s kind of famous… Worked at Nike during the “Just Do It” years. Helped Howard Shultz build the Starbucks brand. And now he consults with a few lucky businesses and does speaking engagements all over the world. Even Kazakstan. Nice!</p>
<p class="MsoNormal">Bedbury’s a very genuine guy. I’m glad, because that’s part of his branding mantra; the importance of being genuine.</p>
<p class="MsoNormal">These days, companies can’t get away with being disingenuous. Some blogger, somewhere, will call you on it faster than you can say, “Where the hell’s our PR firm?” As Bedbury said, “the days of the corporate comb-over are gone.”</p>
<p class="MsoNormal">The brand assessment work we do is designed to reveal the truth behind a brand, not a well-polished corporate version of it. But some companies don’t like looking in the mirror. They aren’t forthcoming with the comb-overs and other cosmetic improvements because the genuine attributes of their brand just aren’t pretty.</p>
<p class="MsoNormal">I’ve seen cases where a company’s internal perception of the brand doesn’t jive with the consumer’s reality. If that’s the case, your branding efforts will have to reach much deeper than just the marketing department. You’ll actually have to change the product, tweak the operation or hire a different team. Because “everything matters.”</p>
<p class="MsoNormal">It’s nice to hear that Bedbury’s donating his talent for good causes. As he says, great brands use their superhuman powers for good and place people and principles before profits. “Give a damn, and give back,” to be exact.</p>
<p class="MsoNormal">Patagonia is a company that gives a damn. There’s nothing fake about Yvone Chouinard’s dedication to environmental causes, and it shows in everything the company does. The Patagonia brand, the operation and the products are aligned perfectly around a single, unifying idea… Save the environment so we can all enjoy the outdoors.</p>
<p class="MsoNormal">Unfortunately, few companies are as focused or philanthropic as Patagonia. Several business plans came across my desk in the past week, and it reminds me why Bedbury’s branding message is so important. All too often, the startup is only about cashing out. Nothing else.</p>
<p class="MsoNormal">Jim Collins, author of Built To Last, has something to say about that: &#8220; The entrepreneurial mind-set has degenerated from one of risk, contribution, and reward to one of wealth entitlement. I developed our business model on the idea of creating an enduring, great company — just as I was taught to do at Stanford — and the VCs looked at me as if I were crazy. They&#8217;re not interested in enduring, great companies, just an idea that you can do quickly and take public or get acquired within 12 to 18 months. &#8220;</p>
<p class="MsoNormal">Anyway, even if you don’t have a great company that donates a portion of your profits like Patagonia does, you should still have a cause that drives your operation — a purpose the employees can rally around. Making your quarterly stock projections is not it.</p>
<p class="MsoNormal">Bedbury’s boss at Nike, Phil Knight, didn’t want anyone watching the stock price. When he got to Starbucks it was posted by the hour, up on a bulletin board for everyone to see. Not sure if Bedbury was able to change that practice or not, but it never sat well with him. He’d rather think long term.</p>
<p class="MsoNormal">Another thing about Bedbury is that he can still laugh at himself. (Or at least he could in a friendly, familiar atmosphere on a Friday afternoon in Bend, Oregon.) Again, he’s following his own advice. An amusing anecdote and an easy chuckle are perfectly “on brand” for Scott Bedbury.</p>
<p class="MsoNormal">He’s not the type of guy you’d find as a Chief Marketing Officer at a Fortune 500 company, that’s for sure. He’s more storyteller than suit.</p>
<p class="MsoNormal">Storytelling is a big part of branding. Once you’ve figured out the real crux of your brand, you have to communicate it in a form that people can understand. And nothing is more effective than a good, old-fashioned story. Doesn’t matter if it’s delivered via the latest, greatest mobile technology, it’s still just a story. Tell it well. Tell it often. And keep it real.</p>
<p class="MsoNormal">One last piece of advice, inspired by Bedbury… Don’t be afraid to reinvent your brand from time to time. Every summer he “shuts it down,” and hangs out with his family in Central Oregon. He writes, plays a little golf and recharges the batteries. So his own, personal brand will be fresh and ready for the next, big brand adventure.</p>
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		<slash:comments>6</slash:comments>
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		<title>State Farm is Where??? A customer service disaster.</title>
		<link>http://www.brandinsightblog.com/2008/08/12/state-farm-is-where/</link>
		<comments>http://www.brandinsightblog.com/2008/08/12/state-farm-is-where/#comments</comments>
		<pubDate>Tue, 12 Aug 2008 17:45:11 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[ADVERTISING]]></category>
		<category><![CDATA[BRANDING]]></category>
		<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[customer service in the insurance business]]></category>
		<category><![CDATA[Geiko]]></category>
		<category><![CDATA[insurance advertising]]></category>
		<category><![CDATA[insurance brands]]></category>
		<category><![CDATA[Insurance slogans]]></category>
		<category><![CDATA[State Farm Insurance]]></category>

		<guid isPermaLink="false">http://brandinsightblog.wordpress.com/?p=49</guid>
		<description><![CDATA[
By John Furgurson
A couple years ago, when my kids were just 9 and ll years old, the subject of insurance came up at the dinner table. God only knows why.
My kids could recite — and often sing — the slogans of every major insurance company in the country. They had been exposed to so many [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><!--StartFragment--></p>
<p class="MsoNormal">By John Furgurson</p>
<p class="MsoNormal">A couple years ago, when my kids were just 9 and ll years old, the subject of insurance came up at the dinner table. God only knows why.</p>
<p class="MsoNormal">My kids could recite — and often sing — the slogans of every major insurance company in the country. They had been exposed to so many commercials, they knew ‘em all…</p>
<p class="MsoNormal">“Nationwide is on your side.”</p>
<p class="MsoNormal">“Like a good neighbor, State Farm is there.”</p>
<p class="MsoNormal">“You’re in good hands, with Allstate.”</p>
<p class="MsoNormal">Prudential. “ Like a rock.”</p>
<p class="MsoNormal">As a parent, I was aghast. As a branding professional, I was amused, and a bit curious. Why would the insurance companies spend millions advertising on the Disney Channel and on ABC Family? At first glance, it seemed like a lot of wasted exposure.</p>
<p class="MsoNormal">Then I think about my own experience, and it sort of makes sense.</p>
<p class="MsoNormal">My parents were insured by State Farm. My wife had a State Farm agent when we got married. It never occurred to me to look anywhere else, and we’ve never had a compelling reason to change.</p>
<p class="MsoNormal">Insurance is one of those low-interest, out-of-sight-out-of-mind service categories that no one really wants to think about. I’d rather have a root canal than deal with insurance of any kind. And that’s why those early branding efforts are so important… once they have ya, they have ya.</p>
<p class="MsoNormal">We’ve stayed with the same insurance company for almost 20 years not because State Farm has good service or great rates. Not because we’re loyal to our agent, who lives 120 miles away and never speaks to us. It’s because we absolutely hate the thought of switching.</p>
<p class="MsoNormal">It’s like brand loyalty by default. Life, auto, home, boat, cabin… We’re all in, and the hassle factor of changing insurance carriers is just too much to even contemplate.</p>
<p class="MsoNormal">But that was before we ever filed a major claim. Before our little winter disaster.</p>
<p class="MsoNormal">It always snows a lot in the Oregon Cascades, but January 2008 was crazy. The garage/shop at our mountain cabin eventually collapsed under the weight of 10 feet of heavy, wind-packed snow. It was a total loss, to the tune of about $60,000.</p>
<p class="MsoNormal">Naturally, we called our agent. Her assistant put us in touch in contact with a claims adjuster, and for the first time, we realize that State Farm is like two separate companies. The independent agents who set up the policies and collect the money have nothing to do with the claims adjusters who pay money out.</p>
<p class="MsoNormal">For 80 years, State Farm has branded itself as a neighborly, down-home sort of company that would be there for us, if we really needed ‘em. That’s the perception they’ve spent millions to maintain.</p>
<p class="MsoNormal">The reality, however, is quite different indeed.</p>
<p class="MsoNormal">The lady who’s supposed to be handling our claim definitely didn’t get the memo about being a good neighbor. In fact, any goodwill that State Farm has built up with us over the years went right out the window with just one claim.</p>
<p class="MsoNormal">It’s been seven months, and they haven’t even finished cleaning up the disaster area. Our neighbors are not happy. State Farm is going to cover the loss, eventually, but the process has been painful at best. When we called our devoted agent to complain, we got nothing but excuses and second guessing.</p>
<p class="MsoNormal">I can’t even imagine what the Hurricane Katrina victims must have gone through. The State of Mississippi finally had to sue State Farm to get them to pay the claims due.</p>
<p class="MsoNormal">Talk about a PR debacle. Instead of looking like a good neighbor, State Farm came out of that storm looking like an evil, corporate giant that could care less about the little people. I’d love to know how much market share they’ve lost since then.</p>
<p class="MsoNormal">There are two important morals to this saga:</p>
<p class="MsoNormal">1. When it comes to branding, actions speak louder than words. You have to be very, very careful about promising something in a slogan or ad campaign that you can’t deliver day in and day out. Fifty years ago, State Farm probably could deliver on their promise. But not anymore. Today, State Farm is country’s largest home insurer and in the top 30 on the Fortune 500 list, It’s too big to be a good neighbor.</p>
<p class="MsoNormal">2. Branding is not just a function of the marketing department. It’s also an operational issue.</p>
<p class="MsoNormal">State Farm’s operation is totally out of alignment with their brand. The sales side and the claims side are not operating from the same playbook, and State Farm can’t fix their problem by changing their tried and true slogan. They have to change the way their claims division works in order to live up to that slogan. They need to align the experience with the brand promise.</p>
<p class="MsoNormal">A tall order, no doubt.</p>
<p class="MsoNormal">Brands have always been about trust, and promises kept. For me, State Farm betrayed that trust. The behavior of one claims adjuster was so “off brand,” I’m ready to start the long and painful process of changing insurance companies.</p>
<p class="MsoNormal">I think.</p>
<p class="MsoNormal">If anyone knows of an insurance company that doesn&#8217;t operate like two separate entities, let me know. And if  there’s anyone out there who works for State Farm and would like to expand on this, please do!)</p>
<p class="MsoNormal">
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		<title>Positioning — It&#039;s not what you SAY. It&#039;s what they THINK.</title>
		<link>http://www.brandinsightblog.com/2008/07/23/positioning-%e2%80%94-its-not-what-you-say-its-what-they-think/</link>
		<comments>http://www.brandinsightblog.com/2008/07/23/positioning-%e2%80%94-its-not-what-you-say-its-what-they-think/#comments</comments>
		<pubDate>Wed, 23 Jul 2008 21:56:14 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[BRANDING]]></category>
		<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[FEATURE ARTICLES]]></category>
		<category><![CDATA[7up]]></category>
		<category><![CDATA[Al Ries]]></category>
		<category><![CDATA[automotive marketing]]></category>
		<category><![CDATA[Cadillac]]></category>
		<category><![CDATA[Cola Wars]]></category>
		<category><![CDATA[Jack Trout]]></category>
		<category><![CDATA[Just Do It]]></category>
		<category><![CDATA[MARKETING STRATEGY]]></category>
		<category><![CDATA[mission statements]]></category>
		<category><![CDATA[Nike marketing]]></category>
		<category><![CDATA[Oldsmobile]]></category>
		<category><![CDATA[Pepsi]]></category>
		<category><![CDATA[Positioning]]></category>
		<category><![CDATA[positioning strategy]]></category>
		<category><![CDATA[product positioning]]></category>

		<guid isPermaLink="false">http://brandinsightblog.com/?p=45</guid>
		<description><![CDATA[<a href="http://www.brandinsightblog.com/2008/07/23/positioning-%e2%80%94-its-not-what-you-say-its-what-they-think/"><img align="left" hspace="5" width="100" src="http://www.brandinsightblog.com/wp-content/uploads/2008/07/brain-763982-11-300x299.jpg" class="alignleft wp-post-image tfe" alt="" title="brain-763982-11" /></a>By John Furgurson
In the 1970’s Al Ries and Jack Trout popularized the concept of positioning. Since then, they’ve written dozens of books between them and have made a fortune on the speaking circuit.
Still, you could have a roomful of MBA’s and no two would agree on what positioning really means. Many people can’t even decide [...]]]></description>
			<content:encoded><![CDATA[<p></p><p>By John Furgurson</p>
<p>In the 1970’s Al Ries and Jack Trout popularized the concept of positioning. Since then, they’ve written dozens of books between them and have made a fortune on the speaking circuit.</p>
<p>Still, you could have a roomful of MBA’s and no two would agree on what positioning really means. Many people can’t even decide if the word is an active verb or a proper noun.</p>
<p>Most people think of positioning as a simple step ladder. The cheapest, lowest-end products are &#8220;positioned&#8221; at the bottom of the ladder, and the best, most expensive products are on the top shelf, if you will.</p>
<p>But positioning has little to do with real price or quality. Instead, it’s all about perception.</p>
<div id="attachment_578" class="wp-caption alignleft" style="width: 300px">
	<a href="http://www.brandinsightblog.com/wp-content/uploads/2008/07/brain-763982-11.jpg"><img class="size-medium wp-image-578" title="brain-763982-11" src="http://www.brandinsightblog.com/wp-content/uploads/2008/07/brain-763982-11-300x299.jpg" alt="" width="300" height="299" /></a>
	<p class="wp-caption-text">Positioning happens in the brain, not in the boardroom.</p>
</div>
<p>The whole concept of positioning is  based on the simple fact that we form opinions about products and companies based on our own perception. These opinions are influenced by all sorts of things… word of mouth, personal experience, individual prejudices, blogs, the marketing efforts of the brand in question and a hundred other factors.</p>
<p>In our own minds we make some pretty broad — and often rash — assumptions about things. Call it consumer bigotry if you want to. The fact is, we pigeon hole companies and products the same way we pigeon hole political candidates.</p>
<p>As marketers, our goal is to tap into these existing perceptions and use them to our advantage.</p>
<p>Here’s a classic example. Back in1968, before the term positioning was ever invented, the makers of 7-Up scored a huge coup in the soft drink market.</p>
<p>Taste tests and other forms of consumer research revealed that people saw 7-Up as a refreshing alternative to colas. Respondents said it flat out… “it’s a nice change from all the cola I’ve been drinking.”</p>
<p>So the 7-Up executives decided to market the drink as the alternative to cola. It was a no-brainer, really. They simply took the existing perception in the marketplace and turned it into their strategy.</p>
<p>From a positioning standpoint this strategy worked remarkably well for several reasons. First, it didn’t attempt to change anyone’s perception. It simply leveraged the existing public opinion.</p>
<p>Secondly, it effectively repositioned the competition. Without slamming them, 7-Up lumped Coke, Pepsi and RC all together in a single boring category of colas.</p>
<p>Finally, the new strategy made 7Up relevant to the young people who account for a large portion of soft drink sales. The campaign tapped into the prevalent anti-establishment mind set of the late 60’s. It actively encouraged defiance against the cola establishment and portrayed 7-Up as a symbol of dissent. The entire campaign summarized the popular values of the public and catapulted 7-Up into the position as the third leading soft drink in America.</p>
<p>Like all good positioning strategies, 7Up’s was simple and almost painfully obvious. Once the executives at 7-Up knew what consumers were thinking, there was no other way to go.</p>
<p>The creative execution of the strategy, however, was not so obvious. J. Walter Thompson’s  simple two-word slogan “The UnCola” said it all.  Brilliant! The campaign gave the product a personality, cemented the idea in our collective consciousness, and assured 7Up a place in advertising history.</p>
<p>While it is possible to build a positioning strategy around images alone, it’s usually a few simple words like “The Uncola” that solidify things in the consumer’s mind. Because you don’t “position” a product, you communicate its position.</p>
<p>“Just Do It” communicates Nike’s position as the shoe for serious sports. “Pizza Pizza” is a fun way to communicate Little Ceasar’s  low-price strategy. “Avis, we try harder” communicated the benefit of being number two in the rental car business.</p>
<p>On the other hand, many automobile companies have struggled to find the words that capture the public perception of their brands. Oldsmobile, the now defunct GM brand, is a good example.</p>
<p>In its last 14 years, Oldsmobile floated no fewer than ten different slogans. Here’s a few of the real gems: “Olds Quality. Feel it.”  “This is not your father’s olds.”  “Demand Better.”  “Look what happens when you demand better.”  “Defy Convention.”  “It knows the road.”</p>
<p>Ironically, the slogan that’s most memorable is the only one that even hints at the reality of Oldsmobile’s perception with American car buyers.  “This is not your father’s Olds” used the old, fuddy-duddy perception of Oldsmobile and spun it in a positive way. Maybe if they’d have stuck with it for more than a year, the brand would still be alive today.</p>
<p>You wonder what kind of research Cadillac executives did that led them to believe they could compete with Honda and Toyota in the small car market. The Cimmeron failed miserably back in the 80’s.  Then they’re tried again in the 90’s with Caterra, “The Caddi that zigs.”  Now they’re trying to compete against BMW, Audi and Mercedez, with little success.</p>
<p>This is a classic case of force-feeding a product into a position in the market. But Cadillac as a sporty car just does not compute with the American public. It goes against everything Cadillac has ever stood for. The world’s biggest, most luxurious SUV is one thing, but we’ll never buy the concept of a small, sporty Cadillac.</p>
<p>On the same vein, Porsche is way off track trying to compete in the SUV market.  The Porsche of SUV’s has a nice ring to it, but it will never really resonate with the public that sees Porsche as a rich-man’s sports car. What’s next, Chateaubriand at McDonald’s?</p>
<p>There’s an important distinction to be made here between niche marketing and positioning. Cadillac can decide to focus on the luxury sports car niche and can build a car specifically for that purpose. But that does not mean the product will ever be perceived that way in the minds of the consumer. The problem is, Audi and BMW already occupy that space in the consumer’s mind.</p>
<p>Here’s another trap that many companies fall into: They mistake their mission statement for a positioning strategy.</p>
<p>Fortune-500 companies miss the boat all the time on this. There’s a giant health care provider that recently formed an internal committee to study the “position” of the company and draft a “positioning statement.” What they came up with was a mission statement at best.</p>
<p>But your mission — your statement of purpose — may have nothing to do with your position in the market place. And vice versa.</p>
<p>A mission statement is concocted by a committee and exists in corporate  brochures, annual reports, and  press releases. A positioning statement is formed in the consumer&#8217;s mind. A mission statement is the rose-colored view of your company. A positioning statement is the gritty, 16mm view.</p>
<p>No doubt, the semantics of positioning can get confusing. But if you want to hedge your bets, think of it this way:</p>
<p>Postioning is not something you do, it’s something that happens. You can choose a narrow market niche, devise a new pricing strategy and launch a giant ad campaign that, together, may affect people’s perception of you. But you can’t technically “position” anything.</p>
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		<title>Bare breasts mean business at Starbucks.</title>
		<link>http://www.brandinsightblog.com/2008/04/30/bare-breasts-mean-business-at-starbucks/</link>
		<comments>http://www.brandinsightblog.com/2008/04/30/bare-breasts-mean-business-at-starbucks/#comments</comments>
		<pubDate>Wed, 30 Apr 2008 18:58:54 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[BRANDING]]></category>
		<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[FEATURE ARTICLES]]></category>

		<guid isPermaLink="false">http://brandinsightblog.wordpress.com/?p=26</guid>
		<description><![CDATA[<a href="http://www.brandinsightblog.com/2008/04/30/bare-breasts-mean-business-at-starbucks/"><img align="left" hspace="5" width="100" src="http://brandinsightblog.files.wordpress.com/2008/04/starbucks-logo-pre-19871.jpg?w=200" class="alignleft wp-post-image tfe" alt="" title="" /></a>
Notice anything different at your local Starbucks lately? I sure have. The familiar green and white logo on the cups is missing. It’s a travesty to brand-conscious graphic designers everywhere.
At first glance I thought maybe it was just a corporate cost-cutting measure — the result of tremendous Wall Street pressure to improve performance. But once [...]]]></description>
			<content:encoded><![CDATA[<p></p><p><!--StartFragment--></p>
<p class="MsoNormal">Notice anything different at your local Starbucks lately? I sure have. The familiar green and white logo on the cups is missing. It’s a travesty to brand-conscious graphic designers everywhere.</p>
<p class="MsoNormal">At first glance I thought maybe it was just a corporate cost-cutting measure — the result of tremendous Wall Street pressure to improve performance. But once I looked a little closer, I noticed something even more revealing:</p>
<p class="MsoNormal">Starbuck has bared her breasts! The mermaid that’s been the Starbucks icon from day one, has gone back to her topless, hippy roots.</p>
<p class="MsoNormal">There are a lot of other changes going on at Starbucks in Seattle — you might even call it a corporate shake-up — but none are as symbolic as the undressing of the logo. I take it as a sure sign that CEO Howard Schultz is serious about stripping away some of the fat and refocusing on the core of the Starbucks brand .</p>
<p class="MsoNormal"><a href="http://brandinsightblog.com/2008/04/starbucks-logo-pre-19871.jpg"><img class="alignnone size-medium wp-image-27" src="http://brandinsightblog.files.wordpress.com/2008/04/starbucks-logo-pre-19871.jpg?w=200" alt="" width="200" height="200" /></a></p>
<p class="MsoNormal">That little nod to the humble heritage of his company says a lot. The green logo has just two words: “Starbucks Coffee.” The retro logo reads “Starbucks Fresh Roasted Coffee.” It’s a reminder to the world that Starbucks has always been obsessively focused on the quality of it’s product.</p>
<p class="MsoNormal">In his book, <em>Pour Your Heart Into It</em><span>, Schultz says, “The number one factor in creating a great, enduring brand is having an appealing product. There’s no substitute.” </span></p>
<p class="MsoNormal">I know a few coffee snobs who claim that Starbucks isn’t as good as the local guy’s Ethiopian Tega &amp; Tula. And they may be right. But I also know that Starbucks beats the hell out of the mom &amp; pop drive-up operations that have appeared on every corner.</p>
<p class="MsoNormal">At Starbucks, the product is consistent. The coffee is just as good as ever, but the company has made some operational decisions that have had a subtle effect on our perception of that quality. Shultz seems determined to correct that, and if his track record over the years is any indication, he’ll pull it off.</p>
<p class="MsoNormal">Ever since I read his book back in ‘99 I’ve used Schultz and his organization as a great example of focused leadership, exceptional execution and textbook branding. He has always been the brand champion in that organization. He was one who introduced the idea of gourmet coffee to a nation of Folgers drinkers, and he has always fought to maintain quality standards even during their hyper-rapid growth.</p>
<p class="MsoNormal">Shultz is adamant about controlling the brand experience as much as possible, down to the last detail. That’s why the company never sold franchises. At first, Shultz didn’t even want to sell coffee in paper cups at all, lest it detract from the experience and affect the flavor.</p>
<p class="MsoNormal">So these new “transformational initiatives” of his are no big surprise.</p>
<p class="MsoNormal">First thing is to recapture that appealing coffee aroma in every store. Believe it or not, that smell of fresh roasted coffee is every bit as important to the brand as the look of the stores or the music they play. It works on a subtle, subconscious level, but the bottom line is, you won’t hang out and enjoy your double half-caf mocha if the place doesn’t smell good. So Starbucks is going back to manual espresso machines and killing the sale of breakfast sandwiches.</p>
<p class="MsoNormal">The Starbucks business model is based on the idea of the third place… that we all need a relaxing getaway that’s not home and not work. To me, it’s more of a romantic, Vienna coffeehouse experience than a quick, Italian espresso shot. So the roll-out of free wi-fi service is long overdue. Paying for an internet connection at Starbucks was just idiotic to me.</p>
<p class="MsoNormal">The third and final cornerstone of the Starbucks brand is its own people.</p>
<p class="MsoNormal">“We built the Starbucks brand first with our people, not with consumers — the opposite approach from that of the cereal companies,” Shultz said. “Our competitive advantage over the big coffee brands turned out to be our people.”</p>
<p class="MsoNormal">Starbucks doesn’t just talk about treating people well, the company really does. In the retail food service industry, where getting good help is always a challenge, Starbucks leads the way with its pay scale, benefits packages, training programs and retention rates.</p>
<p class="MsoNormal">“We believed the best way to meet and exceed the expectations of customers was to hire and train great people. That’s the secret of the power of the Starbucks brand: the personal attachment our partners feel and the connection they make with our customers.”</p>
<p class="MsoNormal">The company also listens to its front-line employees. The idea for Frappuccino came from the store level. The new website, mystarbucksidea.com, started out as an internal feedback tool for employees. Now anyone can go online and post their own ideas for Starbucks, vote for the best, and see what’s being implemented.</p>
<p class="MsoNormal">Which brings us back to that idea of reintroducing the old logo, circa 1971.</p>
<p class="MsoNormal">The change coincides with the introduction of a new house blend, called Pike Street Roast, for people who just want a good, robust cup-o-joe. In that context, and with everything else that’s happening at Starbucks, the branding throwback makes perfect sense.</p>
<p class="MsoNormal">The mark was originally inspired by a woodcut image of a Norwegian mermaid, fully exposed. Over the years, as Starbucks grew and became “more corporate,” the logo slowly morphed. Eventually the designers gave her long hair, which covered her breasts and made her more palatable to a broad commercial audience.</p>
<p class="MsoNormal"><a href="http://brandinsightblog.files.wordpress.com/2008/04/starbucks-logo-1987-to-19921.jpg"><img class="alignnone size-medium wp-image-28" src="http://brandinsightblog.files.wordpress.com/2008/04/starbucks-logo-1987-to-19921.jpg?w=200" alt="" width="200" height="200" /></a></p>
<p class="MsoNormal">Now Shultz wants to go back in time. Back to when the company wasn’t really worried about offending anyone on Wall Street. Maybe this little flash of skin is just what the company needs. <strong> </strong></p>
<p class="MsoNormal"><a href="http://brandinsightblog.files.wordpress.com/2008/04/images1.jpeg"><img class="alignnone size-medium wp-image-29" src="http://brandinsightblog.files.wordpress.com/2008/04/images1.jpeg?w=137" alt="" width="137" height="141" /></a></p>
<p class="MsoNormal">
<p class="MsoNormal">If you want to recapture the magic of your brand, or build a new one from the ground up, give me a call. 541-749-4409.</p>
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		<title>Isn’t “Inspiring Bank” an oxymoron?</title>
		<link>http://www.brandinsightblog.com/2008/03/24/isn%e2%80%99t-%e2%80%9cinspiring-bank%e2%80%9d-an-oxymoron/</link>
		<comments>http://www.brandinsightblog.com/2008/03/24/isn%e2%80%99t-%e2%80%9cinspiring-bank%e2%80%9d-an-oxymoron/#comments</comments>
		<pubDate>Mon, 24 Mar 2008 21:40:30 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[BRANDING]]></category>
		<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[FEATURE ARTICLES]]></category>
		<category><![CDATA[bank advertising]]></category>
		<category><![CDATA[bank branding]]></category>
		<category><![CDATA[bank marketing]]></category>
		<category><![CDATA[corporate culture]]></category>
		<category><![CDATA[Ray Davis]]></category>
		<category><![CDATA[Umpqua Bank]]></category>
		<category><![CDATA[World's greatest bank]]></category>

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		<description><![CDATA[<a href="http://www.brandinsightblog.com/2008/03/24/isn%e2%80%99t-%e2%80%9cinspiring-bank%e2%80%9d-an-oxymoron/"><img align="left" hspace="5" width="100" src="http://brandinsightblog.files.wordpress.com/2008/03/images.jpeg" class="alignleft wp-post-image tfe" alt="images.jpeg" title="" /></a>
It’s funny, where people find inspiration; For Monet, it was the garden. For me it’s the bookstore. The ski slopes. And the Children’s Museum.
My bank is definitely not on the list. 
The most exciting thing to ever happen at my bank was the emancipation of the counter pens…  They were released from their chains and [...]]]></description>
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<p class="MsoNormal"><span style="font-family:Arial;">It’s funny, where people find inspiration; For Monet, it was the garden. For me it’s the bookstore. The ski slopes. And the Children’s Museum.</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">My bank is definitely not on the list. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">The most exciting thing to ever happen at my bank was the emancipation of the counter pens…  They were released from their chains and replaced with crappy logo pens that were free to take home with just a minimal, $10,000 deposit into a 15-year Certificate of Deposit at the historically low rate of 0000.01 percent interest, less deposit verification fees and other institutional weasels. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Nope. The banking industry is the last place I’d look for business inspiration or marketing insight. That is, until I met Ray Davis, the CEO of Umpqua Bank. Mr. Davis was in Bend the other day, visiting his local “stores” and speaking at the entrepreneurs forum. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Turns out, he doesn’t get inspired by the banking industry either. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Twelve years ago Umpqua Bank was a small, community bank with about $150 million in deposits. Today it has 135 stores in three states and almost 8 billion in deposits. Umpqua ranks 34<sup>th</sup> on Fortune Magazine’s list of 100 best places to work in the country, and is #1 according to Oregon Business Magazine.</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Bankers and banking consultants from all over the world visit the Umpqua headquarters in Portland to see what they’re doing and how they’re doing it. And what’s even more impressive is that other businesses, in completely different industries, are also looking to Umpqua for inspiration. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">So what’s behind it? What’s turned this small town brand into one of the fastest growing banks in the nation?</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">“Umpqua started to take off once we realized what business we’re really in,” Davis said. “I don’t believe we’re in the banking industry. We’re in the retail services business.”</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">When Davis applied for the job at Umpqua he warned the Board of Directors that he was going to throw out all the old conventions of the banking industry and start something completely different. Because he believed they couldn’t compete against the big guys in any conventional way.</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">“Banking products are a commodity,” Davis said. “You can’t differentiate yourself that way. The big guys are just going to copy any good new product we come up with. But they can’t copy the way we deliver the service. They can’t copy our experience.”</span></p>
<p class="MsoNormal"><img src="http://brandinsightblog.files.wordpress.com/2008/03/images.jpeg" alt="images.jpeg" /></p>
<p class="MsoNormal"><span style="font-family:Arial;">For that, he borrowed ideas from two great retailers… Nordstrom and Starbucks. Umpqua stores look more like the lobby of a stylish boutique hotel than they do a bank. You can settle into a comfortable leather chair and read all the leading business publications. Have a hot cup of their Umpqua blend coffee. Check your e-mail or surf the web. Listen to their own brand of music and maybe even make a deposit or open a new account. Who knows.</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">It’s a dramatic leap when you compare that experience to the cold, marble conventions of the banking industry. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Clearly, Davis knows how to execute. He doesn’t talk about “execution” per se, but he obviously has the discipline to match the vision. He’s knows how to motivate and how to manage an organization through dramatic changes.</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">“As a CEO, you absolutely HAVE TO BE an optimist. There’s no other choice. Because no one will follow a pessimist. But you also have to be unreasonable to some extent and relentless to stay the course once it’s set.”</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">Here are some of the things Davis has successfully implemented and some reasons why his bank is now on my inspiration radar…</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• Random acts of kindness:  Local Umpqua teams just do good stuff, like buying coffee for everyone who walks into a neighboring Starbucks. They don’t have to ask permission. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• They get their customer service training from Ritz Carlton. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• Every Umpqua employee gets a full week of paid leave to devote to a local charity. That’s 40 hours x 1800 employees! Any other banker would do the math and say it’s too costly. Davis says it pays off 100 fold. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• They’ve opened a innovation center in Portland’s trendy South Waterfront District. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• They have their own blend of coffee. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• Proceeds from Davis’ book go to charity. Buy it at <a href="http://www.amazon.com">www.amazon.com</a> “Leading for Growth. How Umpqua Bank Got Cool And Created A Culture of Greatness.”</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• They invented a way to measure customer satisfaction. As Fast Company Magazine put it: <span style="color:#333333;">Umpqua Bank has a rigorous service culture where every branch and each employee gets measured on how well they deliver on what they call &#8220;return on quality.&#8221; Our research division, BNResearch, handles that kind of work for another innovative, billion-dollar company in an even less glamourous industry… veterinary medicine. </span></span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• They embrace design as a strategic advantage. Everything looks good at Umpqua. It’s a visually pleasing experience, which appeals to the creative side of me. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• Davis GETS IT! He knows, intuitively, that his brand is connected to their corporate culture. “Banking executives always ask, ‘How do you get your people to do that?’ It’s the culture we’ve built over the last 10 years. It doesn’t just happen. You don’t wake up one day and say, gee, look at this great culture we’ve got here. Our culture our single biggest asset, hands down.”</span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• He’s a great communicator. Davis uses stories, analogies and real world examples to motivate and persuade. Not banking statistics. </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">• He embraces the idea of a big hairy audacious goal. Everyone answers the phone “Thank you for calling Umpqua Bank, the world’s greatest bank.” </span></p>
<p class="MsoNormal"><span style="font-family:Arial;">So the next time I’m looking for inspiration, maybe I’ll skip my usual haunts and head down to the bank. </span></p>
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		<title>One of the worst words in marketing: “Huh?”</title>
		<link>http://www.brandinsightblog.com/2008/02/07/the-two-worst-words-in-marketing-%e2%80%94-part-1-%e2%80%9chuh%e2%80%9d/</link>
		<comments>http://www.brandinsightblog.com/2008/02/07/the-two-worst-words-in-marketing-%e2%80%94-part-1-%e2%80%9chuh%e2%80%9d/#comments</comments>
		<pubDate>Thu, 07 Feb 2008 06:09:01 +0000</pubDate>
		<dc:creator>john furgurson</dc:creator>
				<category><![CDATA[CASE STUDIES]]></category>
		<category><![CDATA[Audi commercial]]></category>
		<category><![CDATA[Audi R8]]></category>
		<category><![CDATA[Automotive advertising]]></category>
		<category><![CDATA[clarity in commercials]]></category>
		<category><![CDATA[marketing messages]]></category>

		<guid isPermaLink="false">http://brandinsightblog.com/?p=15</guid>
		<description><![CDATA[

I am not a stupid person. I can connect the dots pretty well when it comes to concepts, ideas and images used in commercials or print ads. In fact, I bet I&#8217;m a lot better at it than the typical Superbowl fan.
And yet, as I watch commercials or read print ads, I  often find myself [...]]]></description>
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<p class="MsoNormal">
<p class="MsoNormal">I am not a stupid person. I can connect the dots pretty well when it comes to concepts, ideas and images used in commercials or print ads. In fact, I bet I&#8217;m a lot better at it than the typical Superbowl fan.</p>
<p class="MsoNormal">And yet, as I watch commercials or read print ads, I  often find myself scratching my head saying “HUH?” What was the meaning of that?</p>
<p class="MsoNormal">What were they really trying to say?</p>
<p class="MsoNormal">What are they thinking?</p>
<p class="MsoNormal">That doesn&#8217;t make sense. Why should I care?</p>
<p class="MsoNormal">Here’s a good example from Sunday’s superbowl telecast… The Godfather spot for the new Audi R8. <a href="http://[youtube=http://www.youtube.com/watch?v=0_sshN-URJY]">[youtube=http://www.youtube.com/watch?v=0_sshN-URJY]</a></p>
<p class="MsoNormal">Normally I wouldn’t waste my breath critiquing the commercials that debut during the game, but this one really got me because it’s a brand I adore. I’ve owned three different Audis now, and I love ‘em. Especially this time of year when the roads are slushy by day and icy by night. <a href="http://www.audiusa.com">audiusa.com</a></p>
<p class="MsoNormal">But I digress. We’re talking about advertising that makes you go huh, not sports cars that make you go wow.</p>
<p class="MsoNormal">Some credit to Venables Bell &amp; Partners of San Francisco for breaking away from the usual automotive cliches.  The spot in question is a take-off on the most famous scene from The Godfather, circa 1975. The slow-paced set-up gets your attention right away. And I’ve heard that Godfather fans recognize it immediately… dramatic music with an exterior shot of a gigantic Italian mansion.</p>
<p class="MsoNormal">Cut to a creepy old guy asleep in bed. He wakes up, pulls the sheets back and reveals, horror of all horrors, the front end of an unrecognizable car. His screaming is really, quite disturbing. Then, finally, they cut to a shot of the R8 zooming out of the driveway.</p>
<p class="MsoNormal">The tag says, “old luxury just got put on notice.”</p>
<p class="MsoNormal">HUH?????</p>
<p class="MsoNormal">I had to watch this spot three more times before I could identify the front end of the car as a Rolls. And the old man is covered in oil instead of blood. Talk about over the top.</p>
<p class="MsoNormal">In the advertising business that technique is called borrowed interest. Usually it’s reserved for me-too products in categories with low involvement and little inherent interest. Like non-aspirin pain relievers or feminine hygiene products. You have &#8220;borrow&#8221; interest from something that people will relate to.</p>
<p class="MsoNormal">But that’s definitely not the case here. Have you seen the R8??? It’s the coolest, meanest looking new car in years. Who needs to borrow an old movie scene to advertise such a great product? Couldn’t the creative team find any inspiration in the R8 itself?</p>
<p class="MsoNormal">And why, may I ask, is Audi positioning the R8 against an old Rolls Royce? The R8’s a sports car more comparable to a Lamborgini than a Rolls. Not exactly apples-to-apples.</p>
<p class="MsoNormal">I doubt I’m the only person who’s confused by Audi’s approach. And that’s my point…  why sacrifice clarity for an elaborate spin-off that leaves people feeling completely clueless? Nobody’s going to spend time figuring out the message like I did.</p>
<p class="MsoNormal">Besides, if I worked for Audi I’d want people talking about the car, not the commercial.</p>
<p class="MsoNormal">It seems like the R8 spot was conceived with no clearly defined message in mind. Like they said, “hey, let’s spend four million dollars and introduce the R8 at the Superbowl this year. Wouldn’t that be cool.”</p>
<p class="MsoNormal">Nobody took the time to figure out the strategic intent of the spot before the creative team sat down. In other words, Audi didn’t know what they wanted to say besides “introducing the new R8.&#8221;</p>
<p class="MsoNormal">Was it really their intent to scare Rolls Royce and Mercedes? I can’t imagine. Maybe someone thought the car was a little over the top, so they did a commercial to match. Who knows?</p>
<p class="MsoNormal">Chances are, you don’t have 5 million dollars earmarked for one, single commercial. But if you did, wouldn’t you want to avoid confusing people?  Wouldn’t you want the best ROI you could possibly get?  If so, then make sure your marketing messages have these three things covered: Relevance. Credibility. Differentiation.</p>
<p class="MsoNormal">There are thousands of ways you could tell your brand’s story, but the trick is to make your message relevant to the specific group of people you’re targeting at that particular time and place. Is the Godfather really relevant to football fans who’d seriously consider an Audi R8? Will that movie reference resonate more than the car itself?</p>
<p class="MsoNormal">That’s the trouble with borrowed interest. Super low relevance.</p>
<p class="MsoNormal">The second thing is credibility. Consumers these days are highly skeptical of any commercial pitch, and a claim that leaves them scratching their head will never pass the credibility test. Confusion’s never credible.</p>
<p class="MsoNormal">Finally, good old-fashioned differentiation.  I have to admit, the four-second shot of the R8 at the end of the Godfather spot is enough to differentiate it from any other car on the road. All the rest of it’s just Superbowl egomarketing nonsense.</p>
<p class="MsoNormal">Before you place your next ad, be sure to do the &#8220;Huh&#8221; test. Listen carefully to the feedback and if a lot of people come away saying &#8220;Huh, I didn&#8217;t get it,&#8221; then you need to rethink the ad. There are plenty of great, creative ideas that won&#8217;t leave people utterly confused.</p>
<p class="MsoNormal">But do your ad agency a favor and get that feedback early in the process.  Before you film anything and blow the production budget. And trust your instincts&#8230; if it feels confusing to you, it&#8217;s almost guaranteed to be confusing to people who aren&#8217;t as familiar with your product or service.</p>
<p class="MsoNormal">And while you&#8217;re at it, also do the &#8220;Duh&#8221; test. You don&#8217;t want that reaction either. It&#8217;s never a good idea to make your target audience feel like idiots.</p>
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