The Paradigm Shift in the Field of Brand Positioning “Brand Journalism”

In the marketing field, positioning has been highly recommended to determine brand’s position in the market. That is why most of the companies could focus on a certain target market with their differentiations. However, Light indicates the new type of approach to the customers without positioning strategy. That is called “Brand Journalism,” and actually McDonald’s practice this concept in the real market. This time, I would like to contrast each other and introduce my insight.

 

Brand Positioning

All of the students studying Marketing are supposed to learn this concept in college. This is often comes with STP strategy; segmentation, targeting, and positioning. Positioning is really practical to differentiate products from others in the same targeted market. For example, one of the largest global auto mobile companies, Audi, states its brand slogan as “Vorsprung durch Techinik.” According to my translation…it means “Progress by technological innovation.” Among the competitive auto mobile industry, Audi runs its business based on this slogan, and makes itself as most technologically advanced product brand in the world. Also, customers are able to see the technologically innovated designs easily because they have already had such an image via brand positioning. This is how brand positioning works in the market.

 

Brand “Journalism” or “Chronicling”

Contrary to the positioning, brand journalism avoids specific differentiations to targeted market. The name of “Journalism” comes from the concept of magazine with a variety of topic people choose. The case of McDonald, it provides snacks, meals, and also coffee with the concept of McCafe.

Another example is Prius by Toyota. The brand statement of it is “LOVE is Energy.” It uses abstract words, so that customers are allowed to have different perceptions. A husband might think it as family car, or a grandfather might think it as his way of transportation. By casting abstract images, customers have their own stories to that brand.

 

Pros and Cons of Each Strategy

The positioning has strong power to appeal a certain targeted market. However, it might lose other potential customers who are not interested in that position. The one might choose to buy BMW for the image of high-status car, although Audi is also actually one of the highest states cars in the world.  

On the other hand, brand journalism has potentials to get wide range of customers by means of showing abstract images. However, it might weaken the brand power itself in terms of vagueness. For instance, even if the Prius would be better than Audi in terms of technological functions, people would buy Audi because of its explicit statement.

 

My Insight on This Topic

Personally, I believe McDonald’s succeed in brand journalism because of its brand power and its industry. Generally, people know what it is when they hear “McDonald’s.” It represents the No.1 American fast-food restaurant providing hamburgers and snacks for a cheap price. When McDonald’s try to come up with new products, customers expect them as cheap and fast via their experiences. However, think about small business entity that is going to expand its brand image. How can people know what that brand represent? It has to establish the position in the market or industry first.

 

I am totally against the concept of brand journalism for every single business entity. This logic or theory is applicable only for the existing strong brands to expand their target market. The funny thing is, I cannot come up with any companies that started their branding with journalism. Even Larry, who advocates the new concept, works for McDonald’s, which was firstly established by positioning.

I would not like to generalize the concept of journalism as the good tool for all brands, and still would like to regard STP theory as the most rational way of branding.

The Importance of Marketing Research

I would like to discuss about the importance of marketing research in this post. Why is it important? Many scholars say marketing is always “customer oriented.” In other words, marketer provides what the customers need, want. Missing this notion, “Marketing Myopia” will happen in that marketing team. Also, for the companies which have several brands on their own, they have to avoid “Cannibalization” among their own brands under the same market.

In order to know the customer, marketing research should be done accurately.

*Marketing Myopia is the situation of misallocating customers’ need, want. It often happens when marketing is based on company’s interest.

*Cannibalization is the concept that the brands from the same company are taking the same market share each other, and make the brand strategy less effective.

 

How do companies know their customers?

There are a lot of ways to approach customers. However, typically marketers should define their customers first. STP strategy is really helpful in this step.

Segmentation---divide customers into the homogeneous categories.

Targeting--------define the target segment with sufficient volume of customers.

Positioning------compare and estimate the position within the target segment.

 

 

 

 

 

 

 

Once marketers know who their target customers are, they now approach to the customers.

Customer Behaviors

In our class, we talked about Focus Group Discussion and Brief Survey. I also put Anthropologic Observation Method.

 

Focus Group Discussion----relatively high cost, needs incentives for participant, deep

Discussion

Brief Survey-----------------easy to do, limited time and questions, literally brief info

Anthropologic Observation---cost depends on the duration, needs observers’ sense

 

I prefer the Anthropologic Observation, because all the insights are from my sense.

Especially for Focus Group Discussion, I doubt people answer from their heart. As the article from one of our classes claims that customers do not know themselves. Therefore, marketers are supposed to extract the core insights from those customers by means of marketing senses.

 

Here is my thought

Generally, I do not completely what people say. I might be a critic against everything. For the case of Focus Group Discussion, I would do it just for the brainstorming, or getting background information of target customers. For brief survey, it is only for demographic information of target customers such as age and family structure.

At the end of marketing research, i.e. conclusion, I tend to take Anthropologic Observation to make insights from those background information above.

I am not sure this cycle will work, since I am not the professional of marketing. However, the class project must be the opportunity to try this process.

*images from
http://ord.yahoo.co.jp/o/image/SIG=1437ptddt/EXP=1348635349;_ylc=X3IDMgRmc3QDMARpZHgDMARvaWQDQU5kOUdjVERFRVp5XzZ4WDJWMFJEQ09oLU1uRVZJZFR4b3NPQThMZjRKa3F4YmVXeEV2U0RLQjhQZDF0bHpDRwRwA2JXRnlhMlYwYVc1bklISmxjMlZoY21ObwRwb3MDMjMEc2VjA3NodwRzbGsDcnI-/*-http%3A//themarketbureauwebsite.businesscatalyst.com/_blog/Stories/post/Small_Business_How_To_Do_Market_Research/
http://ord.yahoo.co.jp/o/image/SIG=133539ito/EXP=1348635469;_ylc=X3IDMgRmc3QDMARpZHgDMARvaWQDQU5kOUdjUXVzc3RfYmtMTGlveHhKZloxOGRnSzBXTmhiMVNPYVRhWFpmUnVyOHlFTFRKS24zNDJ2empXVTJvBHADZEdGeVoyVjBhVzVuBHBvcwM5BHNlYwNzaHcEc2xrA3Jy/*-http%3A//www.istockphoto.com/stock-photo-10665379-targeting-a-group-of-people.php
http://ord.yahoo.co.jp/o/image/SIG=12i3l259q/EXP=1348635723;_ylc=X3IDMgRmc3QDMARpZHgDMARvaWQDQU5kOUdjUTRaUzRoaXRWRnI5bU9aWm1oMFRmS1p5NXhCT3BqcGVEaGdHMnJmTUxYZzhzMWJyUV9Vd283dm1FBHADWlhSb2JtOW5jbUZ3YUdsaklISmxjMlZoY21ObwRwb3MDMTM4BHNlYwNzaHcEc2xrA3Jy/*-http%3A//www.ischool.utoronto.ca/research/profile/cara-krmpotich

Marketing and Brand Positioning of BAT; Lucky Strike

Generally to say, we are living now in the diverse interest society due to the globalization. That means, people have variety aspects of their own needs, wants depending on their consumer culture, or economic status. Companies are supposed to take strategic marketing more active than before. One of the competitive industry in the world is Tobacco manufactures. Since the more and more people are trying to quit smoking habit, they are literally taking other pies in the existing market. This time, I would like to discuss about the brand positioning of “Lucky Strike” by British American Tobacco Plc (BAT).

 

Three Ws: Who/ What/ Why

According to Kellogg on Branding P. 25 , about brand positioning, we have to begin with those three premises,

1)      Who should be targeted for brand use?

2)      What goal does the brand allow the target to achieve?

3)      Why should the brand be chosen over other brands that achieve the same goal?

Also quoting the concepts from P. Kotler, one of the authorities of Marketing, we can think about STP (Segmentation, Targeting, Positioning).

 

The case of BAT as the core-brand, “Lucky Strike” is one of its sub-brand product. BAT also holds other famous brand products such as “Kent” “Kool”. In order to prevent Brand cannibalism (to taking marketing shares under the products from the same company), BAT differentiates “Lucky Strike” from other brands.

 

Here is my insight of its brand strategies.

1)      Who---the people who like to smoke legally

2)      What---Lucky Strike allows people to enjoy its classic taste of cigarettes, and also it reminds them of the old days of America.

3)      Why---people who want to experience the classic and old taste of experiences can feel like that when they smoke Lucky Strike

Then I cast the STP

Segment---basically Demographic and Psychographic segment with age, area, and interests

Targeting---the main target of this product is the people who want to experience the classic

tastes.

Positioning---Within the target market, there are other brands that is targeting the same segment such as Marlboro by Phillip Morris.

 

“Lucky Strike” VS “Marlboro”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

So, how are they different in the same target segment?

As it is mentioned above, they are trying to deliver the old taste of tobacco.

However, Lucky Strike does not have other brands with it. On the other hand, Marlboro has its sub-brands such as Marlboro Light, Marlboro Black Menthol.

Probably PM (Phillip Morris) tries to take its famous name advantage to their product diversity.

BAT does consistent on Lucky Strike for the image of old and historical experiences.

 

What is the Results of Those Differences?

“Lucky Strike” reminds people of old experiences of the United States. What the interesting is that in Japan, the market share of Marlboro is much higher than Lucky Strike. Why? The answer might be that most Japanese do not have any interests in the classical days of the America. This is the gap of demographic segmentation in the global market.

But still, BAT is doing a good business in Japan with other brands, Kool and Kent. If you go to the club house in Japan, you can see many people having Kool, because we have the image of “COOL, YOUNGSTER”

I would like to observe more on tobacco industry after this assignment.

 http://www.bat.com/servlet/SPMerge?mainurl=%2Fgroup%2Fsites%2FUK%5F%5F3MNFEN%2Ensf%2FvwPagesWebLive%2FDO89KHEK%3Fopendocument%26amp%3BSKN%3D1

 

Brand Statement

If I expand the products, I would put the statement which sounds like “the most valuable product for the most valuable people”

Think about the tobacco, BAT claims they provide values for people who like to smoke and to experience. I do not interesting in creating and increasing the gross numbers of market, but in increasing the gross satisfactions of existing customers, and strengthen the brand loyalty. This is new trends in the marketing, which is called “Customer Relationship Marketing”

The Application of the Branding Theory 2

I wrote about the application of the branding theory to personal branding before, and I would like to write another application “differentiation” in this post.

 

 

Am I different?

Yeah, everyone has a different personality and characteristics. There are no one who are exactly identical to another (even the crones cannot be identical except their appearances).

However, how do we appeal our specialties or uniqueness to others, like job interviewer?

 

 

 

 

 

 

 

Signaling our difference

Here is some MBA knowledge, “Signaling” and “Asymmetric Information”.

Asymmetric Information is the state of lack of information.

Signaling is the way of representation.

 

For example, when companies try to communicate their core value to customers, one of the way of signaling is branding. Using the appropriate brand image, then customers are able to know what the value is. Especially for the current market, there are a lot of products and services. In this state, customers are in the situation of Asymmetric information. So that companies should signal their differences via branding activities.

 

How to apply these theories to the personal branding?

For the application of these theories, customers would be the members of human resources, and companies would be the university students.

We, as university students, try to signal our superiorities such as having a business degree or MBA degree. People in charge of human resources can know who is different, who has a potential to work.

Holding MBA means not only having business knowledge but also having willing to work as a business professional in the society.

Some of the students at Elon join the business competition, that would means those students have a potential to work aggressively.

 

Every single activity will be one of our signals, and we try to tell those signals to the people.

pics from

http://ord.yahoo.co.jp/o/image/SIG=11l9qrom3/EXP=1347945412;_ylc=X3IDMgRmc3QDMARpZHgDMARvaWQDQU5kOUdjUmJ4SHBreEFLR3dqSGtoVmpNZUd3TXFNOFpGV1VvQzJtMnFoQmlpZUtCY3ozM0FsNjdnZEFBVXl6Z2ZnBHADWkdsbVptVnlaVzUwYVdGMGFXOXVJR0oxYzJsdVpYTnoEcG9zAzEzBHNlYwNzaHcEc2xrA3Jy/*-http%3A//www.shireensmith.com/?p=66

 http://ord.yahoo.co.jp/o/image/SIG=1233m40un/EXP=1347945338;_ylc=X3IDMgRmc3QDMARpZHgDMARvaWQDQU5kOUdjUjhtbkp1dXlyMU1tY0FPMWZMd3J5VzdiS2pJcjJCaU9YMWlVZzZpM0ptMVpVdXZEeGN6Y2hJblhRBHADWkdsbVptVnlaVzUwYVdGMGFXOXUEcG9zAzYEc2VjA3NodwRzbGsDcnI-/*-http%3A//www.howard-insurance.com/differentiation

 

Core Value of the Products; How to Succeed in the Differentiation

On the page83 of “Winning at New Product”, one of the success factors of product innovation is “Differentiation as a unique superior product”.

 

How is this differentiation working on the competitive market?

Based on the 5 forces analysis by Porter, one of the forces is the alternative product or value.

Like the case of PS3 and Wii, Sony defines its value as high-tech TV games, but the Wii defines its value as enjoyable moment for everyone. At that time, the concept of Wii controller was really unique in the term of playing not only sitting on the coach. After the observation of how Wii took the market share from others such as PS3, X-Box, it can be said that the definition of the core value by Nintendo was right for the customers.

For the customer’s perspective, the definition of “superior” did not mean the quality of TV game (PS3) but the expected moment of the TV game (Wii)

             

How to Define the Values?

On the page 85 of the book, it is also suggested that “the definition of “unique and superior” and “benefit” are constructed from the customer’s perspective---so they must be based on an in-depth understanding of customer needs, wants, problems, likes, and dislikes”.

It is obvious if you look at the case above. Companies should deliver the most valuable products for the customers. So, how to define the values in the most appropriate ways?

One of the methods is the market analysis, and it has a lot of detailed methods to hear the customers” opinions.

The other methods is statistics, collect the data and put them into the numeric formula, and then make the inferences.

Again, the book suggested in the Ch. 2, that one of the biggest reasons for failing of the new product is the lack of marketing research. In that term, it is really important to analyze the customers’ perspectives.

 

The case of keyboard-integrated smartphone

I found the interesting article about new product on trendhunter. com  http://www.trendhunter.com/trends/fastfingers-keyboard-case

Have you been suffered from typing on the smartphone screen? I have a lot… and I often wish if I have a keyboard on the smartphone. Actually in Japan, I have read the statistics that about 80 % of the smartphone users feel uncomfortable than using the normal type of cellphones.

This product really understands the customers’ problems, and innovated (re-innovated?) the new type of smartphone. Maybe for the manufacture’s perspective, they think this innovation is stupid because of its easiness of innovation, but for the users like me, we phrase this type of innovation.

 

pics of Wii is from

 http://www.narinari.com/Nd/2007097942.html

Think and Act Differently

I was thinking about to keep writing on the application of brand theories, but I would like to like about the Entrepreneurial skills this time, since we had a lecture by Prof. Palin, and his “horrible” dog.

 
What Are The Entrepreneurial Skills?

Since it has many varieties of definition in this society, I would like to quote what Prof. Palin said in our class.

1)      Opportunity Recognition

2)      Identifying and Gathering Necessary Resources

3)      Creativity in Planning

4)      Execution for Success

 

Actually I am majoring in Entrepreneurship at Elon University, and Prof. Palin is my academic advisor now. When I visited his office, he told me that the more and more companies in the United States are going to hire students with entrepreneurship spirit.

In fact, this trend also applies to Japanese companies. Why do they need the entrepreneurial students?

This is my implication; now the society is changing really fast, and no one can predict our future status in5 years or 10 years. Therefore, the companies need people who have “Intrapreneurial skills”.

 

Is It Always Right To Do Different Things?

 

This is the most difficult question that I have in these days. Yeah, doing different things is really interesting, and easy to drag the attentions. But, it also increases the risk to disgust someone. Personally, I have an experience in large dogs (I got my balls bitten by grandpa’s dog when I was 5 years old) and I focused on not Prof. Palin but on his dog!

This is one of the funny things, like you can take it as joke, but maybe there would be someone who just felt uncomfortable. By the way, I really understand why he took his dog to the lecture.

The question “is it always right to do different things?” is going to be examined by myself.

 

images from
http://www.elon.edu/e-net/Note.aspx?id=960820
http://howtosavetheworld.ca/2012/08/02/the-ten-har

Strategies For The Short Product Life Cycle on the Innovation

 

PLC is getting shortened

 

     The Product Life Cycle, as known as PLC, has been shortened in those days because of the speed of change in the world, which is caused mainly by technology advances.

      In this society, no one expects to keep the same product for about 10 years, and this tendency also applies to the industry such as automobile and electronic products.
If you go to one of the retailer like Best Buy, and you will see many products with the highest technology at that time. However, you can see the more developed products in the same store after a couple of years.
      Therefore, the standard of technology development is always moving from time to time, and there are no reasons for consumers to keep the same products for a long time span.

 

What are the R&D strategies for this situation?

Most recent type of washing machine

So, how the people in R & D or branding teams are solving this matter?

     I have heard an interesting thing from my past professor in Japan. Also, this statement can be supported by our experiences as one of the consumers in this society.

Because they are not expected to be kept for a long run, the recent products are designed
 intentionally to have a short-product life span!
Imagine that you purchase the washing machine, and 2 years later you find something wrong with the product. But, you are going to move to other city, so that you do not have to repair it.
       This is not because of the poor quality of the product, but because of the definition of the product. Both suppliers and consumers do not expect to use the one product for their entire lives.

 

The Case in Japan

the old-type of washing machine

After the loss of the Second World War, Japanese society experienced the dramatic industrial development in 1960’s. Until the early 2000, most of the products are supposed to use over 10 years. Last year, I went back to Japan and I noticed there was the old-type washing machine in my grandmother’s house. She told me that she had used that machine for about 15 years with subtle repairs. On the other hand, the washing machine in my house was getting in a bad condition, even though it spent only a couple years. 

As the cases above, most companies are adjusting this rapid changing society and customer tendencies in the world.

 

 

The Possible Failures of New Product Marketing

 

Since the society is changing every seconds of time, all the new product marketers need to think and act fast as much as they can.

they do not have time to keep thingking until they find the 100% sure answers. It is impossible, because the society is still changing while they are thinking.

Some conpanies use other consulting conpanies for this reason, becuase they are the professionals of Marketing Researches. However, the people in manufacture companies should correctly define the premise, assumptions of their marketing researches.

 

As the Cooper says in his book "Winning At New Products", one of the reasons of failing new product marketing is the poor marketing research.

As the MBA schools teach to their students, marketing teams should correctly and reasonably define the premise, assunptions, and conclusion.

If I work as one of the marketing team members, I am going to do not only the "creative activities", but also the radical researches, which most of the "marketing fans" hate.

References

http://image.search.yahoo.co.jp/search?tt=c&ei=UTF-8&fr=top_ga1_sa&fr2=sfp&aq=-1&oq=&p=sony+high-tech+washing+machine&meta=vc%3D#mode%3Ddetail%26index%3D6%26st%3D0

http://image.search.yahoo.co.jp/search?p=%E6%97%A7%E5%BC%8F%E6%B4%97%E6%BF%AF%E6%A9%9F&aq=-1&oq=&ei=UTF-8#mode%3Ddetail%26index%3D2%26st%3D0

 

Robert G. Cooper; Winning At New Products

 

The Application of Branding Theory

Personal Branding

Who Am I? How Much Am I Valuable?

As most of you are senior, we have to think about our careers in order to get best job positions in the future. One of the key to appeal ourselves is the personal branding. We can brand not only products but also ourselves to attract the companies. This time, I would like to talk about SWOT analysis.

 

 

 

 

 

 

 

 

 

SWOT (Strength, Weakness, Opportunity, Threat) of myself

In order to introduce me, I have to analyze myself. The SWOT analysis is one of the best tool to do it.

SWOT of Yuki Kondo as an employee

1)      Strength---language ability (business level of English and native level of Japanese)

            undergraduate level of business skills (BSBA at Elon University)

            entrepreneurial spirit (major subject in the United States)

            communication ability (wide range of age, nationality, personality)

            good smile (sometime “fake smile” maybe…)

 

2)      Weakness---face (seems to be angry all the time…)

          upset (easy to get upset…)

          hate the crowd (really hate to be violated my personal space)

 

3)      Opportunity---get a job position in the global companies

                        start up some project from nothing with Entrepreneurial skills

                        be used social party (I have a variety of interests such as jazz, sports etc)

 

4)      Threat---no needs of global business for Japanese companies (obviously it’s impossible)

               be suffered from different cultures (probably not, I have experiences)

              

 

These are my self-analysis based on SWOT. The way I can operate those is that I can overcome Threat by my Strength. I can also cover my Weakness by Opportunity. Actually this chart is really helpful when you make your resume or job applications, and I recommend you to do this by yourselves.

 

I would like to mention other ways of personal branding next time.

Simplification

Simplification of the products

According to “the Innovation Secrets of Steve Jobs”,

the core of his marketing strategy can be summarized one word, “simplicity.”

Jobs claimed that he focused on what the customers really need, such as basic functions. In his words, it is described as saying “no” to 1,000 things.

Actually, most of the users of Apple products say that they like Apple because it seems easy to use, and simple to operate. Jobs intentionally designed the product with the idea of simplicity. In fact, he did not invent any specific systems, but what he did is combination of existing technologies into the new form of system with a notion of simplicity.

For the user perspective, they can shift to the Apple products from their current products, which often suffer them to operate. So far, this strategy is working represented by Apple’s success.

 

The Innovator’s Dilemma

“In Apple’s world, simplicity and focus are one and the same”, this quotation reminds me of the theory of C.Christensen “the Innovator’s Dilemma”.

The theory of Innovator’s Dilemma depicts how the market leaders fail to keep its share in the current industry. The leading companies tend to listen to variety of requests from customers, investors or executives. Those varieties make products more complicated, so that at some point they go beyond the customers’ actual needs. Here is the chance of ‘disruptive innovation.’ It has a chance to change the market share of its industry.

For example, why do you purchase CDs? Probably your answer is to listen to some specific music. Jobs created the platform of online tune store, “i-Tunes” so that you do not have to buy actual CDs anymore. Obviously for the music industry, what Jobs did is one of the disruptive innovations.

 

Simplification V.S High Technology

If you go to Best Buy, you can see many new brands such as Apple, Samsung. They used to be Sony, Toshiba, Panasonic…Those are Japanese manufacturing companies which have many high technologies. As it is described above, focusing on what the customers really need has been a great strategy for those years. Since I am interested in the change of industry, I have researched the current strategies of Japanese companies. What is surprising me is that those companies still developing the high technology products with the high price rate. Maybe their target is high income people who try to differentiate themselves from others.

So far, I cannot say which is correct or not. Just I can say the simplification is fitting the current economy. So I am going to observe what is going on this topic.