Category Archives: Brand Reputation

Mercedes and their Smart Cars, or the B-list.

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A while back, we had an in-class discussion about whether Mercedes Benz was tarnishing its brand image by releasing a lower end model. My group member , Alice, whom I recently found out drives the same car as me (great taste!), seems to share the same opinion as I do, on the Benz matter as well. To quote her post,

“It’s the fact that Mercedes is now everywhere on the road that really turns me off.”

Couldn’t agree more. With the amount of Mercedes’ out on the streets now, it feels like they’re beginning to decline in their product life cycle. They’re starting to spit out anything they can (there’s now 14 different classes), and it’s getting repetitive. I mean, it’s not like they’re selling model after model of SLR McLarens. I’ve only seen 2 SLR’s over the past few years, and I see about 2 B-classes every 10 minutes driving in Vancouver and Richmond. I don’t find it prestigious nor perceive it to have a high value when I see it everywhere, every time. Nothing new.

Mercedes prides itself on luxury, and new technology. Neither of which I see any more. Unless I look at this:

but it’s not a Benz.  It’s the Hyundai Genesis, base cost of $40,000, is just $10,000 more than the B-class. The highest end of Hyundai vs. the Lowest end of Mercedes, A sports car vs. an “all around car”.

It’s just a matter of time that Hyundai will increase it’s perceived value, as long as it sticks true to its brand name and image – “Affordable New Cars”.

Like we’ve learned from the beginning, “your brand comes from the promises you keep”.

Mercedes may have then proceeded with “promises are meant to be broken”. Bold. Very bold, but not that smart. So much for Smart Cars..

The battle of the sodas.

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I was reading Marketing Mag again, and another article caught my eye.

Coke vs. Pepsi.

We’ve always known the two soft drink powerhouses to be the first and second, but just recently, a change in the the US market has put both Coke, and now Diet Coke ahead of Pepsi.

AdAge, another of my favourite blogs also had a similar article.

Both Marketing Mag and AdAge questioned whether it was a smart move by Pepsi to suddenly drop from the loop of Super Bowl commercials this year. Instead, they chose to give $20 billion in grants to consumers as opposed to spending it on celebrity endorsements in the new Refresh Project. I personally had an encounter with the project since a friend of mine was working the promotion. In short, students were asked “what do you care about?” and then had the opportunity to take a picture, proudly holding their idea written on a whiteboard in front of a select background of their choice.

I must be perfectly honest, this push promotion strategy seemed to work at the time, and I was intrigued with the concept behind the project. But since the picture, I have forgotten about the project until now (that was in Oct.) and the picture is probably buried under some marketing notes in my room. In fact, when I think Pepsi, I think about this commercial:

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and not the project.

So perhaps a funny commercial with a well-known celebrity is a lot more long lasting? Especially since only a select few will have their Refresh ideas granted, as opposed to using a celebrity in a pull promotion.

Coke, the long leader seems to do this well. With a well-known product placement in popular reality singing competition – American Idol and its long-time sponsorship of the Olympics since 1928!

Roll out the change for roll up the rim!

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I was driving home from lunch today and feeling a bit tired, I decided to grab a coffee on the way home since I still had an afternoon class. And then the little voice in my head kicked in and  I thought maybe I’d just save the extra drive (don’t even get me started on the gas prices these days) and make myself a coffee at home, or even better, hope that I still have an energy drink left in the fridge. And then it hit me…

http://www.marketingmag.ca/wp-content/uploads/2011/02/timhortons_1102.jpg

Rrroll up the rim.

Marketing Magazine reveals that Tim Horton’s has been keeping the success of the famous promotion on the down low. The main purpose of the promotion is to reward the loyal customers. Although redemption rates are said to be high, I must say I have been unsuccessful in winning anything so far: 0-1.

However, what attracts customers are the prizes. Like the article mentions, Napoleon, this year’s barbeque donor, admits that the brand recognition and brand awareness they are getting is huge. Their name is now plastered on who knows how many cups, and windows of Tim Horton’s all around the world-a lot of exposure for an Ontario based company. I can tell Napoleon that their partnership was well worth it. I will admit that I have never heard of the brand until I eagerly read my large double-double to see what kind of prizes I would be winning, and although I didn’t expect to win one of the bigger prizes in just one try (my Facebook updates tell me I’m about 20 or so cups behind winning even a coffee/donut), I now remember Napoleon, and I remember barbeques.

Toyota also comments on how the promotion allows them to better their perceived value.

Tim Horton’s and their partners:

http://rocketlounge.files.wordpress.com/2009/03/photo-5.jpg

myself:

http://4.bp.blogspot.com/-Ux7VVWXYtbE/TW2enReLmRI/AAAAAAAAAXY/30DxkKdJwhw/s1600/tim%2Bhortons%2Broll%2Bup%2Bthe%2Brim.jpg

First The Force, now The Drive.

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Volkswagen’s super bowl ad was it’s first display of the company’s attempt to penetrate the US market. Jim Henry of BNET reports that Volkswagen is looking to spend $4 billion dollars in the US market to push the company’s sales objective up to 1 million sales. However, they can’t just stop in the US.

Volkswagen Norway took this into their hands, literally. AdFreak features the new interactive print-ad that VW Norway has created. I’ll let the video explain itself:

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One comment specifically caught my eye,

“thus creating a successful ad (viral) which is seen by more people regardless of those who actually see and experience the ad physically”

Although the cars may not be out on the market yet, by featuring them in such memorable ads, they are trying to cover the five components of brand equity: brand awareness, perceived value, brand loyalty, brand associations, and symbols/trademarks/patents. They know that there is no trial-ability in the products yet, however, the main purpose of such ads is to get potential consumers to remember the name.

They want consumers to be aware of the Volkswagen brand and what it has to offer. For example, with the Darth Vader ad, they wanted for customers to value that Volkswagen can not only meet the needs of a businessman, but for his son as well. In terms of the virtual ad, both existing and potential Volkswagen customers are able to test out the new features that the car has to offer, and as well, although it may not be legally implicated, they will now be remembered as the first brand that created a “virtual drive” for their customers through a simple iPhone app.

Perhaps next time we are looking for a vehicle upgrade, The Force will bring us right into the Volksagen dealership.

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Has BMO gone too far off the road?

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My MasterCard statement came in the mail today, and after the usual glance of wondering when I had time to rack up the charges, I was about to toss it aside until the second page of my statement caught my eye:

I trust my MasterCard with BMO, and if I wasn’t a loyal TD customer, I’d trust BMO to do my banking as well. But my car? Roadside assistance seems like a brand extension that’s gone further off the road than a flat tire could take me.

But to give it a fair chance, I decided to dig into the details. Currently a BCAA member, I decided to compare the two to see if I was missing out. I compiled a side-by-side comparison of the two basic packages:

The two basic packages offer almost identical services. 4 calls per year, BMO offers 10km maximum of towing, while BCAA offers 5km free or to the closest garage. The only difference? Pricing. The objective of BMO’s pricing is heavily sales orientated. They offer a low price of $69 per year (compared to BCAA’s $87.25) in order attract customers and increase sales. This is an excellent example of strategic penetration planning – trying to establish a solid customer base in order to sustain long-term market share.

On the contrary,  BCAA is able to focus on profit orientation. Because of its already established brand reputation, it can focus on prestige pricing and offering products at higher prices as a reflection of their higher value.

It’s a little to early to tell if BMO will be successful. However, was this diversification the right step? Or should their brand extension have led to a different path?

On that note, my friend Kevin has an entertaining entry on brand extension fails to keep your mind rolling.

The next big thing

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For all categories in the world, there’s always a check-point to let you know you’re doing okay. You can almost retire from acting when you win an Oscar. Of course, that line can be quite subjective, success itself is subjective to what your goals and expectations are. However, being a bit of a sneaker queen, to me, nothing says “you’re awesome” until you’re put onto a pair of Nike’s.

The Next Web features an article that displays three Nike Dunk’s customized by David Reese.

First, we have, the Firefox.

http://thenextweb.com/shareables/2011/02/21/nike-sneakers-featuring-firefox-twitter-and-google/
Initially released in 2004, this web browser is now the second most used browser in the world. Firefox is reaching the middle-end of its late majority stage in the consumer adoption curve. Internet Explorer users that wanted to leave convert have already done so, and it’s a matter of whether Firefox can retain its users from leaving them for the up and rising Google Chrome.

Which brings me to the second “you’re awesome” winner of the night, Google.

http://thenextweb.com/shareables/2011/02/21/nike-sneakers-featuring-firefox-twitter-and-google/

Initially our favourite search engine, Google has invested in market development and have now also satisfied our needs for email, chat, browsers, photo editing, (and the list goes on). At this stage, we may be aware of Google additions, but it is still in the early  majority stage as many of its products are relatively new and not as over-used just yet.

Which brings me to the last sneaker of the day. The “little birdie that told me”,

http://thenextweb.com/shareables/2011/02/21/nike-sneakers-featuring-firefox-twitter-and-google/

Twitter.

Although it has not reached the level of Facebook, tweeting has taken blogging, social media and networking to another level. Tweets, can only be 140 characters long, refraining users from having, as one of my former teachers used to say, “verbal diarrhea” for the lack of a better phrase. Companies have taken to twitter to keep their consumers constantly updated with news and “twitter contests” to their followers. It’s also a platform for a short update, or updatessssss (one too many) from friends without knowing too much or nowadays, too little about them (without having a face-to-face conversation, what are those anyways?) However, Twitter has just reached its early majority, many are still unaware of its powers. Not everyone has caught up to speaking in acronyms like LOL and GTL, so keeping up to date and uncomfortably close to our friends in just 140 characters is still a little ways away. TTYL !

The World’s Top Brand Goes to …

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And the winner is…

http://www.usageorge.com/Wallpapers/Commercial/Coca-Cola-Polar-Bear.html

None other than our polar bear loving friends, Coca Cola.

When I think of my experiences with Coca Cola, I think back of the House of Happiness that they had at Livecity for the 2010 Olympics. What I found the most intriguing was their promotion of “Healthy Living”. When we think Coke, we often think pop, soda, sugar, carbs, and almost everything unhealthy into one delicious can (typical of any junk food). Never have we ever thought of it as a healthy choice to be drinking Coca Cola.

As the world’s number one global brand, Coca Cola prides themselves on “Growth, leadership, and sustainability”. They recognized that society in general has gotten more health concious over the last few decades, and recognized in their SWOT analysis that an opportunity had presented itself. What a better way to promote their stride for a “healthy lifestyle” than to team up with the Olympics – the showcase of the world’s top athletes who are bound to live healthy lives. As well, Coca Cola recognized that they had recognized another weakness, in that their brand was not known for it’s sustainability either. The House of Happiness was filled with events and games that demonstrated these core values. What a better way to remind and educate their consumers than to put them through fun tasks that demonstrated what the brand really stood for.

Even the top brand of the world needs to constantly perform an immediate analysis and use tools like the SWOT analysis to clarify and re-establish brand clarity to both consumers, and the company itself. In doing so, companies remind themselves what their brands stand for, and most importantly, remind consumers why their brand has competitive advantages over leading competitors.

Here’s a snapshot of the runner ups:

http://www.interbrand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2010.aspx

Nikon: Coolpix for Cool Pics

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I’m a big fan of a website called The Cool Hunter:

http://www.thecoolhunter.net/

A website that finds the “coolest” things-including ads. I first found the ad in 2009, but it’s always been one of my favourites because of the incredible marketing strategies behind it.

The ad by Nikon featured an interactive, life-sized billboard of a mob of paparazzi waiting alongside the red carpet. For those wanting to live the lifestyle of the rich and famous, here is your chance.  Located in a central subway station in Korea, anyone passing the billboard triggered an instant bombardment of camera flashes. The red carpet then led straight into a camera shop – what a coincidence!

http://www.thecoolhunter.net/article/detail/1570/nikon-d700-guerrilla-style-billboard

In our 2nd lecture, we talked about the importance of the value-based era. Companies now need to value their customers, and build a long-term relationship to create brand loyalty and recognition. Nikon does this by literally putting consumers into the spotlight,  making the average joe feel like an A-List celeb.

If we were to use a CDSTEP analysis to look at the macroenvironment, this advertisement is nothing but perfect! In terms of demographics, the ad can appeal to anyone and everyone. It’s an eye catcher to whoever walks by it, regardless of your age or sex; if you walk by something that flashes, you are bound to look. Although the ad is made specifically for the D700, it’s also an ad to generate brand awareness. You’re led to a camera shop, which is bound to carry multiple Nikon models . Depending on your economical status and your technological needs, you can then pick another Nikon camera that may appeal more to your needs.

In sports, it’s the stats that count and that stays true in business as well.

http://www.1001noisycameras.com/2010/07/nikon-grabs-the-1-spot-in-dslrsilcs-in-japan-h12010-revisited-real-story-canon-falls-off-a-cliff.html

You be the judge. The ad is from 2009, and in 2010 …

“and the black light doesn’t lie”

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Seventh Generation cleverly uses online social media to allow its consumers to see the “true colours” of both their own, and their competitors’ products. Its most recent venture, the eco-friendly detergent lacking in optical brighteners, was firstly marketed by mom bloggers whom used a dark light to compare two shirts one of which was washed with Seventh Generation’s product, and one which was washed with that of a leading competitor’s (with optical brightener). Seventh Generation also provides their own demonstration, it begins at 1:03 in the video.

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As you can see, the black light doesn’t lie. It reminds me of CSI investigators using black lights to reveal blood trails that are left behind. In fact, Seventh Generation has been listed as a suitable brand for cleaning military uniforms so that they cannot be easily sought out in combat.

However, through all this strategic marketing, Seventh Generation has still generated less than 1% of the detergent market, while Tide holds an astounding 45%. Perhaps consumers believe that if their shirts shine under the dark lights, then it must shine under bright lights as well? In our fast-paced economy, encounters are brief, and first impressions are everything. Though it might not be the case in the military, having a bright shirt that stands out is often thought of as a good idea for an interview, a first date, or even just a stroll through the mall or the neighbourhood.

I thus counter their campaign of “she should glow, not her clothes” with

“when you look good, you feel good.”

Thus if our clothes don’t glow, then we don’t look good, which means…

iPhone deck

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At the beginning of the term, we considered the reasons that Apple was not concerned with the declining iPod sales. What we recognized was that the declining iPod sales but continuous high profits for Apple are an indication of teh loyal customers that have moved up the chain of Apple products. First an iPod user, then an iPhone user, then a MacBook user, and etc.

Why am I mentioning this?
I came across a Desk Phone Deck, a product designed for users to integrate their iPhones with an actual “home” phone type device so that users can get the same traditional feel of a full device, but still using the address book and apps of the iPhone.

This allowed me to come across another reason in which Apple should not be worried. Many other companies are banking off Apple’s success by developing devices and accessories for almost all Apple products – whether it be the phone deck, or cases, or stands, these companies are essentially bettering the quality and the dependability of Apple’s products, and in doing so, the customers are left with a better lasting impression of how useful their iPhone is, or how long their iPod has lasted.

So with that being said, Apple has little to worry because their product quality and brand reputation is easily being developed by other companies at no cost to Apple.