Difficuly of Branding: from my Unique Experiences

Hello again, it’s Yuki.

As we had the guest speaker last week, she showed us a variety of brands that she worked for.

Honestly, I do not know any of them except “Kumon” (I do not know even her company)

 

Frankly, most of the brands that are raised in the class discussion are not familiar with me.

Even “Whole Foods”, which my group’s brand platform was not familiar with me at the first time…

 

What those things mean is that, brand significantly depends on personal or individual’s EXPERIENCE!

 

I would like to cast one question to you guys who are raised in the United States.

Q. How many brands would you know or have any ideas below?

 

 

 

Actually, those brands are really famous in Japan, and I intentionally choose them because those brands are spreading in global context.

 

As the book “winning at new products” says in the chapter of global branding, it is important to appeal to some specific local customers in order to have them experience.

 

For example, “Target” is one of the largest retailers in the United States.

When I first came here, I did not have any idea for it.

One of my friends said

“Yuki, do you wanna go Target?”

I replied

“what is it? ”

He said

“big store, you can buy anything in low price”

I said

“…OK, I still don’t have any idea, but cheap is fine”

 

Now, I love Target.

If we do branding within the existing market, it is fine because people know what we are.

However, if we try to convey brand to the new market, especially overseas, it is much more complicated topic than just “innovation” or “creativity”.

 

Why?

Because people do not know how they innovated! Or generally who you are.

 

It might be too complex to deal just with marketing research.

What I have realized is that the need of not only the research but also the way of delivery to new market.

 

* I really recommend you to check those three companies

"DeNA" and "SoftBank" and "UNIQLO"

DeNA, you can see it in the application game for smartphone.

SoftBank, I can swear that you will see this within 5 years. It recently did M&A against Sprint.

UNIQLO, is already spreading in the United States and Europe.

DeNA...http://dena.jp/intl/

SoftBank...http://www.softbank.co.jp/en/

UNIQLO...http://www.uniqlo.com/us/?ref=splash

Should you listen to the customers?

While I was cleaning my room, I have realized that I bought Harvard Business Review a month ago.
Today, I found one of the interesting article about marketing research.

"Should you listen to the customers?"

 

 

There is a story about the business in art. The person A claims the importance of listening to the customers as one of the research. The person B disagree with this idea, because he tries to maintan creativity, which is beyond the customers' expectations.

 

At the last page, one of the professional commented that

 

"ANY INNOVATIVE company struggles with how much to listen ot customers." with the quotation of Heny Ford, which is the customer would say that the one needs fast horse...

 

 

 

 

 

Don't ask the customers what they want to see...

 

In the summary part, it is said that not to ask what they want to "see", but to ask what motivate them "emotional"

 

According to the Cotler, it seems like "customers' needs, want"

 

I believe that people want something to solve their certain problems, this is called needs.

What the needs are formalized is the product or service.

 

 

I interpreted the theory above in this way,

"ask customer's problem, but not the image of its form."

 

So that marketers can drive their Creativity to formalize the needs.

 

 

 

*most of the information here is from Harvard Business Review sep. 2012

Story Marketing

This time, I would like to mention "Stroy Marketing."
Before I came to the U.S., one book attracted my eyes at the bookstore.
"All Marketers are Liers" by Seth Gordin is what I am talking about.

He asserts that the brand concepts or ideas are spread by people, who really love those.
In this term, marketers are supposed to tell stories of their products, not only explaining the quality but also expanding customers' future image with those products.

For instance, a person who is going to buy Audi might expect his ideal image with it. For his perspective, other brands may not match with his images.
Marketers or sales representatives are try to approach to inspire his future images, with telling stories.

Then, that guy would tell his own experiences with Audi to his surroundings such as co-workers or relatives. This is what Seth Gordin empasis on the importance, and marketers should have this skill expecially within this competitive society.

It is often said that the story marketing is consisted by three steps.
1) Draggin people's eyes, interests by its design
2) Adding values, which raise the people's willingness of payment.
3) Construct the relationships with customers (brand loyalty)

Reminding my first encounter of this book, I was draged by the design, and I thought it deserved to pay a money, not a copy from library, and then finally I have the loyalty to his theory.
(In this case, the name of "Seth Gordin" would be brand.)

People spread their own experiences by means of the stories, like this blog post of my experiences.

Here is Gordin's blog.

http://sethgodin.typepad.com/

Suspicious against Brand Journalims

Around Elon University in NC, there are some Asian Restaurants avairable for the students.
Most of the restaurants have delivery systems, so that students can easily access to their foods.
However, one of the supprising thing for me is Simply Thai, which is in 20 minutes walk from the campus.

Differences from other competitors: 4P

Product

Firstly, I would like to talk about the differentiation of the Simply Thai. I often go to that restaurant with my friends, and I notice many people not only students but also residents around there are coming to the restaurant. Why do I go to that place instead of other Asian restaurants? The reason is, I feel the taste is better than others. Also, I like the design of its restaurant.

Price
Usually, delivery food costs about $10~20 including its fees. Simply Thai, I usually spend $15~25.
From this comparison, I can say $5 is for the cost of experiencing great atmosphere and taste of foods. This depends one's value, that I do not mind paying $5 for those values, but other's might be not.

Place
Considering the actual distance from the campus, Simply Thai is closest Asian restaurant from Elon University. That is one of its advantage. Hoever, delivering systems others take are also advantage in terms of accessibility. This depends on customer's context. If I want to eat inside of my room, I would choose delivery. If I want to go out with my friends, I would choose Simply Thai.



Promotion
Most of the restaurants which have delivery can distribute their advertising around campus.
For the Simply Thai, I have never seen ones on campus, but I often heard from other friends that the Simply Thai is the best. This may one of the way of promotion, with more realistic story telling.


Conclusion
Basically, I still believe the positioning theory.
What the Brand Journalism saying is that the brand should be applicable for many kind of interests.
Should Simply Thai take the delivery systems? No. If it takes them, Simply Thai will be suffered from their costs(gas, human resourse, etc)
Also, if I regard Simply Thai as one of the delivering restaurants, there are no differences from others in my head.

What I really want to claim is that the brand journalism theory has potentials to ruin one's strengths.
McDonald's provides many kind of snacks or light meals. That actually take the sufficient spaces or labor forces for those products. I am fine with just nomal cheeseburger, but since they are taking more and more time to prepare it, I avoid to go to McDonal's when I care about time.
It is no longer fast-food restaurant for me, but it just "cheap" meal for me.


I will try to approach the brand journalism theory, but it will take much time for me to understand or agree to it.