Brand Autopsy

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Would you miss Ace Hardware?

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Continuing my “Would you Miss” series ...

Ace_Hardware

Does Ace Hardware provide such a unique product and customer experience that we would be saddened if it didn’t exist? Does Ace Hardware treat its employees so astonishingly well that those workers would not be able to find another employer to treat them as well? Does Ace Hardware forge such unfailing emotional connections with its customers that they would fail to find another hardware store that could forge just as strong an emotional bond?

What say you?

Post inspiration | Mavericks at Work

Karin Koonings Joins the Fray

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KarinKoonings

Karin, an eleven-year Starbucks marketing veteran, has entered the blogging fray. She's super smart. She’s worth reading. And you’ll be a better marketer for reading THE ESSENTIAL ORANGE.

(Welcome to the fray Karin.)

Re: Starbucks VIA

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SBUX_Via

By now you’ve heard Starbucks is introducing an instant coffee product. It’s a just add water and stir packet called VIA. Okay. Fine. That’s cool. Starbucks has long-dabbled with concentrated instant coffee.

For the past ten years, the Frappuccino ice-blended drinks you’ve been enjoying have been made using a powdered coffee concentrate. And the bottled Frappuccino drink from Pepsi uses concentrated coffee as its base. So concentrated instant coffee isn’t new for Starbucks.

What is new … is how Starbucks is positioning this product. Howard Schultz, Starbucks ceo and chairman, is talking about how VIA will "disrupt and reinvent the instant coffee category."

That’s right, "disrupt and reinvent the instant coffee category."

Hmm … priorities seem to be misplaced.

Shouldn’t Starbucks be more concerned with disrupting and reinventing their core retail business and not the instant coffee category?

Lack of rejuvenating their core retail business has resulted in closing nearly 1,000 locations, the loss of almost 6,000 jobs, and the marginalization of the Starbucks brand.

Selling instant coffee isn’t an instant fix to solving Starbucks problems. It’s a distraction, not a solution.

Small Idea. Big Impact. (Less Mess.)

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File this under “Small Ideas with Big Impact” ...

PROBLEM:
Too much spillage in the men’s room urinals at Schiphol Airport (Amsterdam).

SOLUTION:
Etch an image of a common housefly near the drain holes of the porcelain urinals.

Nudge_FLY

RESULTS:
Spillage has been reduced by 80%. According to someone close to the project, “The fly improves aim. If a man sees a fly, he aims at it.”


Further Learning:
This is an example of what professors Richard Thaler and Cass Sunstein call a NUDGE. These professors classify any act that attempts to “alter [people’s] behavior in a positive way, without actually requiring anyone to do anything at all” as a NUDGE.

Fascinating stuff. Learn more by reading the NUDGE book, NUDGE blog, and this NY Times article.

A Mix Tape Business Book

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Jack Covert and Todd Sattersten are business book evangelists. Notice the use of “evangelists” and not “experts.” Sure, both have expert knowledge about business books, but they intentionally use this knowledge to evangelize how business books can help people make smarter, more meaningful decisions at work.

As the driving forces behind 800-CEO-READ, Jack and Todd know most businesspeople intend to read business books, but rarely do. They read one every couple of years, they have a stack of un-cracked business books, and they certainly need more direction on which business book are worth their time.

In writing THE 100 BEST BUSINESS BOOKS OF ALL TIME, Jack and Todd hope to give people more direction on WHY business books matter and HOW they can help people better achieve.

Sure, the title is hubris-heavy and begs for debate. A better title may have been, THE 100 MOST INTERESTING BUSINESS BOOKS OF OUR TIME. That’s because their book highlights only the most interesting and approachable books that are relevant to today’s business world.

In essence, they’ve created a Biz Book Mix Tape recommending worthwhile books on Personal Development, Leadership, Business Strategy, Marketing, Management, Innovation, Entrepreneurship, etc. With each recommendation comes a three-page summary to give you the flavor of the book to entice you to learn more by reading the entire book.

Trust me, go to the bookstore and riffle through THE 100 BEST BUSINESS BOOKS OF ALL TIME. I’m sure you’ll find it interesting enough to purchase and enjoyable enough to read. And hopefully worthwhile enough to take the author’s advice and revisit your stack of unopened business books.

We’ll talk more about this book on March 2 … we’re the first stop on the Post2Post Book Tour for THE 100 BEST BUSINESS BOOKS OF ALL TIME.

Mighty Fine Word-of-Mouth

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Recently Ben McConnell (Church of the Customer) shared his perspective on the distinction between Word-of-Mouth (WOM) and Buzz. (It’s a good read.)

His post rekindled some of my thoughts on Creationist WOM vs. Evolutionist WOM (video clip). The Creationist WOM marketing mindset is about making the marketing activity something to talk about as in attention-grabbing stunts and gimmicks. The Evolutionist WOM mindset is about making a company’s products, services, and or experiences worth talking about.

Creationist WOM marketers believe Word-of-Mouth just a marketing issue. While, Evolutionist WOM marketers believe Word-of-Mouth is an everyday business issue.

We’ve seen Creationist WOM theory at work recently with Denny’s stunt of giving away 2-million Grand Slam breakfasts for free and all the gimmicky commercials shown during the Super Bowl.

Specific instances of Evolutionist WOM theory at work are more difficult to notice. That’s because these marketing activities are not supposed to be easily noticed by customers. These activities are simply how a business does business. It’s less about marketing and more about how an interesting business operates everyday.

There’s a burger joint in Austin, TX that brilliantly practices Evolutionist WOM thinking — Mighty Fine Hamburgers.

No stunts. No gimmicks. No one-off marketing ploys. All Mighty Fine does is earn opinions by serving up remarkable burgers in remarkable ways.

Let me count some of these remarkable ways.
MightyFine_WOM


#1 – The Queue
Total cattle call. I’ve never been to Mighty Fine when the queue wasn’t at least 10 people deep. You go expecting to wait in line. Anticipation heightens the senses. Besides, long lines that move fast mean a restaurant is doing something right, right?

#2 – Fun Language
If you want Mustard, you gotta say, “Yeller.” “Red” gets you Ketchup and “White” gets you Mayonnaise. Mighty Fine could have gone the common, boring route with Mustard, Ketchup, and Mayonnaise. They didn’t. They decided to make the common uncommon. So uncommon that it’s worth talking about.

#3 – Service
Ask a Mighty Fine employee behind the counter how they’re doing and you’ll likely hear, “Mighty Fine.” They smile. They laugh. They look like they are having fun. Which all benefits the customer experience. Mighty Fine prides itself on hiring only “A Players” who are positive, supportive, and cooperative. To attract “A Players,” they pay above-average wages and offer much better than expected benefits. Mighty Fine knows by astonishing employees, they in turn, will astonish customers.

#4 – Assurance
When placing your order, the Mighty Fine employee writes all your requests directly on the bag. To close the order, the employee again goes over everything with you to best ensure you get exactly the burger you ordered. This process takes time but I’m sure it cuts down on mistakes. As a customer, I appreciate the thoroughness because it brings about assurance.

#5 – Picnic Tables
Old-school family-style picnic tables. Nothing fancy. Nothing fancy needed at a burger joint. This family-style seating makes it comfortable for all ages and helps to encourage conversations between customers from different parties.

#6 – Theater
Taking a page from Krispy Kreme's doughnut theater, Mighty Fine lifts the veil on some of their prep work. The window is wide open for everyone to see the ground chuck getting hand-formed into patties. The krinkle-cut fry cutter is always-on with an employee shooting whole potatoes down the cutting chute. The hamburger cooking and shake-making stations are just behind the counter for everyone to see. Mighty Fine has nothing to hide. It’s operations are in full view of every customer. (Unlike most burger joints.)

#7 – Quality
100% natural beef. Ground in-store. Hand-formed in-store. Fresh cut crinkle-cut fries. Sea Salt is the only salt used. Custom-made beef franks. Hand-dipped and hand-spun milkshakes. Quality is everything to Mighty Fine because they believe quality ingredients produce the tastiest food. (Hard to argue with Mighty Fine here.)

#8 – Smiles
Everywhere you look customers are having a good time. I’m a touch cynical; however, my cynicism subsides when inside Mighty Fine. A good hamburger in a family-friendly setting appeals to young, old, and everyone in-between. (Including this hardened marketer.)

#9 – Mighty Tasty
My Dad is a burger aficionado. In his nearly 75 years, Al Moore has cooked and eaten a lot of burgers. He’s burger expert if there could be one. After visiting Mighty Fine in January, he’s been talking about it with his circle of friends. I asked him what he tells people about Mighty Fine and this is what he says, “The place is awesome. Lots of production people, each knowing their job. The product is even more awesome — a top-notch hamburger. To my surprise, the family-style works. I’ll be back.” That’s one helluva endorsement.

#10 – Job Recruitment
Instead of a pamphlet by the soda machine to attract new hires, Mighty Fine uses a classic grocery store number dispenser like we used to use at the butcher counter. This dispenser is prominently located in the entry/exit way area for potential new hires to see going in and going out. A sign above the dispenser says, “Apply Now.” You pull the ticket and it directs you to a website to learn more information and to apply online. Again, Mighty Fine is simply making the common uncommon. Nice touch.

#11 – Clean Hands
It’s a “jacuzzi for your hands.” That’s what the hand washer says used at Mighty Fine. It’s the same hand washer employees use, so you know it is more sanitary than the common hand sink washer. Kids clamor to use this hand jacuzzi. Parents are always seen lifting up their kids in order for their hands to fit inside the washer. Of course, parents use it too because it’s just so unique you have to use it. Yet again … another way Mighty Fine takes something common and makes it so uncommon it's worth talking about.


Every one of these 11 examples are WOM-worthy. Each one showcases how Mighty Fine turns mundane business matters into something so special that they earn opinions from customers. Because these activities earn opinions, people talk. And because people talk, there is always a line at Mighty Fine. And because there is always a line, Mighty Fine has opened a second location.

Mighty Fine doesn’t need gimmicks to get customers talking. It just does business every day in such a way that people gladly talk about it.

Mighty Fine understands the importance of Word of Mouth. How do I know? This sign displayed in the exit way tells me...

MightyFine_knows_WOM

Dunkin's Snide Snipe at Starbucks

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Excuse the multiple coffee-related postings today. Last one for a long time. I promise.

In a cost-saving move, Starbucks no longer requires its stores to have brewed Decaf coffee ready-to-serve after 12 noon. (You can read all the hubbub on StarbucksGossip here and here.)

Dunkin' Donuts is again sniping at Starbucks. This time, Dunkin' is chiding Starbucks for its cost-savings Decaf decision with a creative print ad that includes this brilliant line, "We don't work around our schedule, we work around yours."

(Ouch, Starbucks. Ouch.)

Dunkin_Does_Decaf_cropped
Kudos to AdFreak for the hook-up.

More Problems than Boring Coffee

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Of course, boring coffee is only one of many problems Starbucks faces today. (For background, read this recent post.)

Now ... for a much deeper dive into Starbucks problems with proposed SOLUTIONS, read this vintage series Paul Williams and I did called: SOLVING STARBUCKS PROBLEMS. We addressed issues including loss of theatre, loss of coffee aroma, loss of store soul, loss of merchandise focus, and loss of identity.

Keep in mind, this series was written in March 2007 and much has changed with the economy and with the Starbucks business. The solutions we offered have stood the test of time, with some of the ideas, especially the ones relating to coffee, being put into action by Starbucks.

Riffing on a MarketingProfs Post

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Writing for the MarketingProfs blog, Ted Mininni posted his take on a recent McDonald’s ad for their McCafe coffee drinks. His post begins …

”Score one for McDonald’s... at the expense of Starbucks and all of the other high-brow coffee shops peddling pricey lattes, cappuccino, espresso and all manner of caffeinated concoctions.”

His post continues by declaring pretentious coffee is out and affordable coffee is in. Right on, I agree with his point given today’s dismal economy.

The comments to his post are lively and run wild. Definitely worth reading.

In the comments, Ted mentions how “Eight O'Clock beat out Starbucks. Go figure.” This triggered a long-dormant thought that is no longer dormant. Read below for my comment to Ted on this.


Ted … I gotta chime in again. You mentioned how 8 o’Clock Coffee beat Starbucks Coffee on taste. True. And Dunkin’ Donuts is touting the taste of its coffee is preferred over Starbucks. Yep. Got it.

Starbucks has never fared well in taste tests. That’s because the taste of Starbucks coffee is too polarizing. Many people say Starbucks coffee tastes too bitter, too burnt, too bold. Starbucks has always had a strong point-of-view about what coffee should taste like. That strong point-of-view about coffee has helped to build its brand.

In the book PURPLE COW, Seth Godin smartly writes … “In almost every market, the boring slot is filled. The product designed to appeal to the largest possible audience already exists, and displacing it is awfully difficult. The real growth comes with products that annoy, offend, don't appeal, are too expensive, too cheap, too heavy, too complicated, too simple — too something."

8 o’Clock Coffee makes boring coffee. Boring coffee is not going to annoy, nor will it offend people. Conversely, non-boring coffee will annoy and offend people. 8 o’Clock Coffee has never been a growth brand. Starbucks, with its non-boring taste profile, has been a growth brand. HAS BEEN, being emphasized.

I offer up that Starbucks has been slouching towards boring coffee for years. The biggest coffee push from the company recently has been behind Pike Place Roast. This is a mild coffee meant to appeal to the masses, which means it’s meant to be boring. Problem is, the Starbucks brand was built on strong, polarizing coffee … not boring coffee.

As Starbucks has grown to over 16,000 locations worldwide, it has tried to tone down its strong point-of-view on coffee in order to appeal to even more people. In my opinion, that’s hurt more than it has helped.

The company has abandoned its strong point-of-view about how “good” coffee should taste. This abandonment has wrecked havoc on its brand. In its attempt to appeal to everyone, Starbucks has lost those someones who enjoyed a coffee taste profile that isn’t watered down to a milder, more palatable and less offending taste.

Back in the day, the coffee Starbucks served earned an opinion from people because it wasn’t boring. These days, the company serves boring coffee (Pike Place Roast) and it no longer has a strong point of view about how good coffee should taste.

It’s my take … focusing on boring coffee has, more than the dismal economy, positioned Starbucks for the steep decline its experiencing.

re: Wasted Brand Potential

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Denise Lee Yohn has started a thought-provoking series about brands not living up to their potential. She kicked-off the series by pointing the finger at GNC (General Nutrition Centers) for not living up to its potential as a brand. About GNC, Denise writes …

“The shopping experience is unmemorable, the little advertising and promotion they do is generic, and other than a private label product line that offers common products at a discount, their product assortment lacks uniqueness.” [READ MORE]

Jonathan Salem Baskin guest-posted on Denise’s blog and called out Facebook for not living up to its potential as a brand.

Denise asked me to guest-post and I single out DAIRY QUEEN as a brand that could be doing more. My opinions on Dairy Queen’s brand relevance were heavily influenced by your comments in this can’t miss “Would You Miss” post.

To read my take on Dairy Queen, click on the image below. (Or click here.)


DQ_Denise
("Click me," said the jpeg.)