BrandSimple | BrandDigital: The Blog

Landor’s third annual list of the top ten Breakaway Brands was released in the November 2nd issue of Fortune magazine. The ranking is based on a comprehensive survey that measures brand momentum over a three year period in terms of financial gain and brand strength – how it’s appraised by consumers. As I looked over the newest top ten brands two things immediately came to mind. First, the brands on the list represented a broad spectrum of categories. TJMaxx to iPod, Stonyfield to Gatorade’s Propel, Costco to Barnes & Noble, with a few relative old-timers thrown in for very good measure. Second, the brands on the list all delivered especially well on the fifth in my top ten list of what it takes to be a strong brand. (You can see the other nine in my book, BrandSimple.) And that is, making sure that your brand strategy – what your brand represents to consumers – is in absolute alignment with your business strategy, or what you deliver. In other words, can you validate the brand experience?

While this has always been essential to brand success, it’s never been more important than in today’s totally transparent, digitally-enabled consumer environment. If you don’t keep your promise in today’s marketplace, you’ll get found out and taken down in an instant, whether by blog, text or brand-damning digital video. Should you have any doubt at all, take a look at the video of the sleeping Comcast repairman on YouTube, complete with background music by the EELS. Each of the companies on the top ten list of Breakaway Brands have the entire organization focused on delivering the brand experience just as consumers expect it to be delivered. The brand strategy is inseparable from the business strategy and it shows both in Wall Street satisfaction and customer satisfaction.

A couple of months ago I wrote about Ford’s new Bold Moves branding campaign. I lauded the company for taking the initial steps required to revive its brand after years of tepid performance. Among the initiatives I cited was the introduction of the hybrid Ford Escape, a vehicle both fuel-efficient and environmentally friendly. I suggested that a really bold move for Ford would be an offer to replace New York City’s entire gas-guzzling, emission-spewing taxi fleet with these green vehicles – a public relations branding signal that would be good for Ford’s brand and great for the planet. While Ford was in no position to do so at the time, it seems that my suggestion was not all that preposterous. It appears New York City’s mayor, Michael R. Bloomberg, has a similar idea. In fact, he’d like to see all New York City cabs replaced with hybrid vehicles within the next five years as part of his PlaNYC which calls for reducing greenhouse emissions in the Big Apple 30 percent by the year 2030. In response to the challenge, Yahoo! immediately donated 10 Ford Escapes to get things rolling. While Ford may not have been in a position to do so a few months ago, I’d say there’s never been a better time than now for them to take the position of change agent in the quest to slow global warming. New York City’s environmental plan is far more extensive than that of any other major city. Converting its fleet of 13,000 yellow cabs to green would send a very strong signal to the world. Ford, by playing a significant role in this effort, would send, in turn, a very strong branding signal. A signal that would be an extremely hard one to equal in its category.

A recent article in the Wall Street Journal talked about how the Lenovo Group’s newest advertising touts the durability and superior engineering of its soon to be launched ThinkPads. While computers that can survive underwater adventures and exposure to deep-freeze conditions are certainly worth talking about, there’s a much bigger story in this article – albeit, a few paragraphs down the page. Lenovo is also about to launch one of the most expensive laptops on the market – a $5,000 notebook computer aimed at top corporate executives. Yes, the price tag is big befitting the computer’s stellar performance, but the bigger story here is the fact that these top-tier computers come with an unprecedented level of support service – platinum level service, if you will. If you run into trouble, a Lenovo tech will meet you in person to solve the issue. No tele-helper in India requesting the model number of the machine. No annoying automated list of tele-menu options. Instead, real live technical support when you need it. From a brand perspective, the newsworthy story in the WSJ article is that Lenovo has identified a way to change a key dynamic in a commodity market – the after-sale user experience. While good quality has become a cost of entry in the computer industry, peace of mind relative to the after-sale experience is a potentially game-changing move. We all know that no matter how solid any piece of technology may be, it isn’t a matter of if you’ll need assistance, but when. Providing assurance that help will actually be there when you need it is a relevantly different, yet simple brand idea. Who has time to wait these days, especially when business comes to a halt? Yes, a number of computer companies offer good post-sales assistance, Apple among them. But not one has yet to offer the level of help that Lenovo plans to provide. Differentiating its brand in this way is not only a big idea, it’s a smart one.

The current Lamisil TV spot for its athlete’s foot treatment does more than demonstrate how to get effective relief from this itchy condition. It demonstrates how to make effective use of sock puppets. Actually, I’m being serious. Despite the best efforts of Pets.com to put its adorable sock puppet dog to good use in the 1990’s, it turned out that consumers loved the cute little scamp with its wry humor, but couldn’t remember the name of the company it represented. It wasn’t relevant enough a branding signal for them to make the connection. Lamisil, on the other hand - um, foot - is using its sock puppets in an incredibly relevant, not to mention clever way. In its ad which takes place in a locker room, a variety of sock-puppet’s talk about feet. Come on. What could possibly be more natural for a sock to talk about than feet? The amusing spot takes the conversation about athlete’s foot out of its generally staid, medicinal space and makes it entertaining in a meaningful way. It’s hard these days to find a branding signal that gets peoples’ attention for reasons you want them to pay attention. The key is to make it captivating, but relevant. Socks that talk about athlete’s foot are both. These smelly guys are also pretty funny. Seriously.

Landor has just released its 2007 ImagePower® Survey looking at green issues and green brands and, not surprisingly, it confirms what intuition would tell us. More and more Americans—40%, in fact—have gotten the message that global warming poses a major threat. More than 50% believe existing environmental initiatives aren’t enough to address the problem. Whether it’s the result of Al Gore’s Academy Award-winning documentary, An Inconvenient Truth, or the increasing volume of business and political discussion from Thomas Friedman on down, green is definitely on the national radar screen. As such, more and more companies are beginning to look at the problem as more than a matter of concern to just tree-hugging fanatics living on the fringe of society. While, again, not surprising, when asked to identify the “greenest” brands, those in the survey did specify a number of brands that have been in the eco-space for years, Whole Foods, Wild Oats, the Body Shop, Aveda, and Toyota among them. The environmental positioning of these brands has been clear to consumers for some time. What was surprising, however, was that those surveyed also identified GE as worthy of a spot on the survey’s list of top ten greenest brands. Surprising, but heartening. And, an indication that this growing concern is leading to a growing awareness far beyond the fringe.

GE is about as unfringe-y as a brand can get. Yet, here is GE setting the bar for any huge, industrial company looking for the right way to enter the green space. First of all, it has assigned a senior executive to oversee the responsibility. Lorraine Bolsinger leads ecomagination, GE’s company-wide commitment to addressing environmental challenges on a global level and she has taken on the substantiation of the sub-branded program incredibly well. Stories on the ecomagination Web site call attention to everything from GE’s answers to cleaner, more efficient sources of energy to its on-going efforts in reducing greenhouse gases. Research and Development investments in the area have grown exponentially. In addition, Jeff Immelt, CEO of GE, has gotten out in front of the program in a major way, a key proof point for any brand looking to walk the green walk, not just talk it. Despite that only a small percentage of GE’s products are environmentally related versus, say, the Body Shop’s where all are geared in that direction, GE has been able to plant itself firmly as a leader in the space early on. This is something that will serve them well as the issue continues to grow in scope and public concern. Needless to say there is no more fringe. GE’s efforts will serve all of us well.

I talk in my book, BrandSimple, about the fact that Jerry Seinfeld would make a great branding guy. The comedian has the uncanny ability to see ordinary things from a different perspective. One of the greatest challenges to building a successful brand is having the knack to look at any of the most ordinary things, no matter how much of a commodity they may be, and find a different way in. The guys at Cereality have done just that. (The fact that Jerry’s a cereal fan is but a strange coincidence.) David Roth and Rick Bacher looked at the way people eat cereal, not just for breakfast, but for lunch, for dinner, and for snacking. They looked at where people eat cereal, not just in the kitchen, but in the living room, in their offices, and in their cars. And, as Jerry might have said, they said, “Hey, ever wonder why there isn’t a cereal restaurant?” There is now. Actually there are lots of Cereality cereal cafes snap, crackle, and popping up all over the country. The founders obviously identified a new way of looking at cereal and at the fast food category. Pajama-clad Cereologists™ stand ready to dish out your choice of over 40 cereal brands - mix and match any concoction you wish – with your choice of milk, from skim to whole to soy to chocolate. With store interiors designed to include the spaces where people feel most comfortable eating cereal - kitchens, living rooms and dining rooms, Cereality retail outlets have become popular with cereal aficionados from coast to coast. It’s a perfect example of brand innovation at its best. Take something so simple, so obvious and get people to say, “Hey, why didn’t I think of that.” Well, David Roth and Rick Bacher did think of it. They looked at something as ordinary as breakfast cereal and found a different way to serve it up. By the way, I’ll have Wheat Chex with Fruity Pebbles and soy milk, please. Let me find out what Jerry’s having.

The second annual Brandz™ Top 100 Most Powerful Brands ranking was just published by Millward Brown Optimor and it’s an incredibly valuable read. I like it a lot for a few reasons. First, it’s got a rock-solid foundation having been built on consumer insight data from Data Monitor and financial data from Bloomberg. Second, it ranks both consumer and corporate brands as measured by their dollar value. And third, I like it because it confirms that what I talk about in BrandSimple is built on rock-solid branding principles. What’s not to like, as my relatives would say.

It came as no surprise to me that the top-ranking brands in the Brandz study are those based on crisp, clear, simple ideas –the underlying premise of BrandSimple. Google, for example, up 77% over last year, is based on the simple idea that the smartest kid in your class – the one with all the answers - is sitting right on your desktop. Apple, another winner, is up 55%. Ask anyone which brand is responsible for creating the coolest, user-friendliest technology and you’ll know why this is so. Target, whose simple idea is making cheap chic is up 88% versus last year. And Best Buy, up a whopping 113%, proves that the simple, “Geeky” idea of a retailer who helps consumers understand how to actually use the technology they purchase is pretty smart.

While all of the above brands are, indeed, based on simple ideas, these ideas are also relevantly different from what the competition promises. Another topic I address in BrandSimple and something reflected in a few of the brand rankings. For example, Dell promises to “make it my way.” Different, yes, but I’m not sure how relevant this is to consumers anymore, which is, perhaps, why Dell is down 24%. Intel, too, has lost value over last year – 26%. The brand, which once differentiated itself by representing faster, more powerful chip capacity, isn’t differentiating itself quite as well these days. “Intel Inside” seems to have strayed. Even Microsoft has lost over 10% in valuation, perhaps related to the too-little-too-late launch of Zune, or maybe just because it’s difficult to differentiate a brand on sheer size.

Back to the upside, however, it’s interesting to see that a number of the winning brands were those that leveraged major market trends effectively, demonstrating that brands are listening to what consumers have to say. Brands that delivered on the promise of social responsibility, especially with regard to environmental issues, did very well. BP, by addressing the climate change with alternative fuels, rose in valuation. Toyota, too, benefited from its environmental stance. Food brands that showed a concern for healthier eating also gained in value, most prominently McDonald’s. As the only brand ranking that combines consumer insight data with hard financial data, the Millward Brown Brandz study is a significant piece of data in and of itself. It’s an interesting and telling read for anyone who wants to know what makes some brands more powerful than others. It’s rock solid.

Complete list

I have a friend who used to say that as long as Walter Cronkite was on the air he felt everything was going to be okay—even when he knew the world wasn’t okay. Well, the world isn’t okay and Walter Cronkite isn’t on the air anymore. But, based on recent ratings numbers, it seems that a lot of people these days feel about ABC’s Charles Gibson the way my friend felt about Mr. Cronkite. Why is the Charles Gibson brand clobbering the Brian Williams and Katie Couric brands in the evening news branding derby? It boils down to a BrandSimple answer; the essence of his brand. The Charles Gibson brand is all about authenticity. And in the evening news space authenticity is the gold standard of brand promises. It’s the most important brand benefit the anchor of a prime time news program can have. Charles Gibson, man as brand, looks and behaves like someone who’s been in the business for awhile. Someone who might have earned his stripes at a small town newspaper. Just the facts delivered with an appropriate degree of compassion. His branding is as real as his brand.

While the Brian Williams brand has a smooth and polished essence, it may be too smooth and polished, especially for viewers who want information, not a sophisticated performance. And, no matter how fervently she tries to distance herself from it, the essence of the Katie Couric brand is one of friendly conversationalist. A great brand for morning coffee, but not right for those seeking hard news from someone who comes across as having been in the trenches. Even in his Good Morning America Days, Mr. Gibson was genuinely self-effacing. No matter how much Brian Williams and Katie Couric try to close the branding gap, it’s going to be hard to do. They’d have to change the very essence of their brands which would hardly ring true. The reason Charles Gibson is winning the evening news branding game is that he has the right brand essence for the space and for the times. Charlie, as he’s referred to, is authentic.

Brands simplify life. A good brand defines itself clearly and concisely so consumers can easily understand what it stands for and why we should like it. In BrandSimple, I write about how the best brands do this.Lists also simplify life; especially lists of “winners and losers.” They provide a simple filter through which to make judgments. When it comes to branding, it’s a filter that allows consumers to quickly communicate which brands they like, and which they don’t. It’s also a filter that allows brands to assess quickly where they stand with consumers.

In December of 2006, branding experts at Landor Associates and our research specialists at partner firm Penn, Schoen & Berland fielded a study that asked over 2,000 participants to rank 92 brands familiar to them, ranging from products to celebrities. The study assessed which brands were hot in 2006 and which would hold their status into 2007. It also determined which brands would most likely fall in status.

While the Fourth Annual ImagePower® Newsmaker Brands resulted in a list of “Winners and Losers,” there’s a lot of detail behind it. Bottom line, the study concluded that whether product or celebrity, the most successful brands have a clear and simple message. It also concluded that brands that vary their appeal across customer segments were most favored by consumers. Having said this, it came as no surprise that brands including Google and Las Vegas topped the winners’ column for two years in a row.

For now, however, let me simplify your life. Here’s the list:

Steve Jobs’ recent announcement that Apple would be dropping “Computer” from its name seems as intuitive as its company’s products. We’ve long taken for granted that Apple is about more than just computers. The introduction of its iPhone is just further proof. Much like Apple transformed the computing industry and the portable music industry, I believe the iPhone could very well transform the mobile phone and the PDA industries. Jobs, it seems, has cracked the code on what it takes to design an easy multi-tasking interface. More than that, he’s cracked the code on what it takes to keep a brand successful. Put simply, keep it releventaly differentiated from anything else on the market.

The user interface on the iPhone, typical in both Jobsian design and functionality, relevantly differentiates the iPhone from other mobile communication devices in kind, rather than degree. It’s not simply a matter of a new look or feature; it’s actually an entirely new way of using a phone. With a high-resolution touch-screen and powered by the basic Apple OS X operating system, iPhone users can shuttle effortlessly from phone to music to video to Internet.

While the iPhone is a no-brainer for the fanatically loyal Apple user base, my predicition is that it will soon become a no-brainer for anyone interested in making the job of multi-tasking easier and more fun. (Would that be most of us?) The fact that Apple has partnered with Cingular, Google, and Yahoo makes the competitive equation even tougher.

In an industry as commoditized as the mobile communication industry, Apple found something relevantly different to offer. This is not just a proprietary technology coup, but a proprietary branding coup. It seems intutive that it would be Apple leading both revolutions.