{Branding, Comparative Warfare, and the Healthcare Debate}

Over the last fifteen years I have helped numerous brands in using comparative ads to win over the consumer. If the decision has been made to directly target a competitor and prove brand superiority, the brand must be prepared to substantiate that claim. If challenged, all internal communication and research must be shared with federal agencies, TV networks, and the target brand; and it is therefore crucial that the research is designed to withstand this kind of critical challenge with pre-tests, national tests, and statistical analysis of results.

As I watch this healthcare debate from the outside, I see both the President Obama led Democratic Blue Brand and the Republican led Red Brand fighting to leave their mark in the people’s mind. Is this any different than two competitive brands fighting it out to tell the consumers that their brand offers the better solution?

Look, for example, at the Chicken wars in which California based El Polo Loco is fighting it out with Louisville, Kentucky based Kentucky Fried Chicken to win over the consumer’s mind for the brand who owns grilled chicken. El Polo Loco is holding true to its core equity, using the flame grilled method of cooking, and being the only brand who offers authentic grilled chicken. KFC, on the other hand, is working hard to build onto its equity of value and solve a perceived problem of the brand, unhealthy (fried only) food. Each brand is playing to its strength and playing hard in doing so.

Similar wars have been fought to own the people’s mind in the following cases:

• Pepsi vs. Coke
• Campbell vs. Progresso
• PC vs. Macintosh
• Gatorade vs. PowerAde
• Starbucks vs. Dunkin’ Donuts
  

In case of the healthcare debate, the battle is drawn on similar lines. The Democrats (Blue Brand) are trying to continue their core equity that won them the presidency and control of both houses, i.e. change and hope. The Republicans (Red Brand) are holding onto their core tactics of warning the people against too much government control.

To decide which brand’s grilled chicken is superior, I can do a taste test for myself and evaluate the claim of both brands. To decide which brand of health care is superior is another matter. The branding of Republicans and Democrats do not give me very much information to evaluate which brand’s claim is more valid for me.

I wonder how the network stations would judge if either of the two brands were challenged for “misleading advertising?”

{Measure Your Way to Success: Secrets of the Super Professionals}

Have you ever seen a serious runner not time his runs?

Football teams measure how long a punt is in the air, because higher air time means defense is more likely to prevent an advance.

Every successful “super professional” I have encountered over the years was simply amazing on knowing the state of their business in real time. These observations have helped me realize three things about measures:

1. What gets measures gets acted upon

Anytime I look at any measure, whether it is my daughter’s school report card, my cholesterol level, or the cash flow of my business, the measure evokes the following questions in my mind:

- STOP: What actions need to be stopped?
- START: What new actions need to be started? What actions need to be improved?
- CONTINUE: What actions need to be celebrated and is worth repeating?

2. We need measures that make action inevitable

There is data, there is information, and then there is information that makes action inevitable. Simple data and information clutter the mind and take away the ability to see the one thing you can do now to influence the future. Here is an example of each of the three types of information:

- DATA: My doctor faxing over my blood report that came from the lab. I read it and say “Hmmm, interesting.” Then I think whether I file it or trash it.

- INFORMATION: My doctor faxes me the same report, highlighting in green the areas I am doing well in, and the areas of concern in red. I got seven greens and three red markings. My reaction again is, “Hmmm, nice!” After I ponder and feel 70% success is not bad, I again go back to my decision: to file or to trash?

- INFORMATION THAT MAKES ACTION INEVITABLE: This time my doctor puts a star on only one thing on the green and red marked report. He puts a brief note saying, “Arjun, this is worrying me. If we do not do anything, you are going to fall in to high risk for a heart attack.” Now my reaction is not “Hmmm,” instead it is “GOSH!” I change my diet and start working out more. Action was inevitable based on the note.

3. Leading indicators are more effective measures than trailing indicators to influence the future.

Most businesses spend hours and days analyzing past performance data to see what worked. Why not use the intelligence to identify leading indicators that will help the business influence sales in future? Here is an example: In my years in the pizza world (Pizza Hut, Papa John’s and others) I realized these simple universal pizza facts:

- The more adverse the weather, the more likely customers will order delivered pizza.
- Based on my past behavior database, I also can identify those customers who usually order pizza when the weather is adverse.

Now armed with these two facts I go to www.weather.com and look at the ten day forecast for my markets. In the markets for which adverse weather is likely, I start taking the following actions to influence high sales:

- Schedule more delivery drivers.

- Ensure drivers to get their cars serviced and checked.

- Direct mail the “bad weather only” customers with a low discount but high value coupon.

- Wait for the adverse weather to arrive and hear the cash register ringing.

Hence, the challenge is to measure, measure, measure, with an eye focused on the action you'll take based on the measure.

{New Marketing Tactics for Chili's and TGIF}

All of us are caught up in the discussion about how bad the current economy is and how we will survive this tough time. Recently, I experienced a practice by two brands who are doing things a “tad” differently to beat these tough times.

First, Chili’s.
Chili’s has a new promotion for two in which you get an appetizer, two entrees, and one dessert for $20. Of course it is a very strong offering, but like all brands, Chili’s also must be facing a reduced media budget. So what does Chili’s do? As I was driving by the Arapahoe and Parker Road intersection (in a Denver Colorado suburb), I saw a man passionately shaking a banner promoting Chili’s new deal. Wow. A brand like Chili’s, who always relied on TV promotions, is now taking their battles to the street corners and trying to drag customers into the parking lot, one car at a time. Simply an amazing adaptation to survive the modern times.

Next, TGIFriday’s.
No one will be surprised to see this offer from TGIF. But when I was recently in a Best Buy store, I saw a promotion to buy select in-store movie titles and included was a buy one entree, get one free coupon valid at TGIF. The titles listed in the promotion include Wanted, The Incredible Hulk, and other family movies. They’re on sale for $12.99 each.

So what are TGIF and Best Buy selling together? A great evening experience for the whole family: eat, have fun, and save a lot. That is bound to make a customer feel good about the brands making life easier for them.

Hence, the challenge is not the lack of resources, but how can we still make customers enjoy a fun moment with limited budget. If you think of similar deals, please let me know as my daughter and I would love to plan a fun father daughter evening with it.

{Does Marketing have a right to overpromise for Operations?}

Many a time when I think about Marperations, I think about Operations not being consistent. My recent experiences with my iPhone made me start thinking, when Marketing over-promises, does Operations even have a chance?

The AT&T dropped call story
Being a single dad and small business owner, most of the time I am on my cell. Lately, AT&T has made that a challenge. When I leave home and get to the intersection of Chambers and Crestline, my calls drop every time. As I drive on, I have discovered six spots within five miles of my home. AT&T has now made my life challenging. I am constantly trying to find new routes or have shorter conversations so that I do not drop a call before I get to the next drop spot.

Now look at these ads. They clearly state more bars and fewer dropped calls. Wake-up AT&T marketing! Why would you pick the one benefit to promote that you cannot deliver on?

McDonald’s Sampling
I think sampling is an age-old, proven method to introduce a new product. But does a brand realize that a promotion like this means Operations needs to have the flexible capacity to meet the demand? There could be one person or one thousand. Operations needs to fulfill every sample order to perfection, as only then will the customer decide favorably to come back and buy from McDonald’s.

JetBlue's Human Touch
Most airline employees other than Southwest employees have forgotten to smile. With the uncertainty of the economy and the airlines constantly coming in and out bankruptcy, I do not blame employees for being stressed. They are performing their tasks with fewer employees (it is called efficiency).
But in that context, when Jet Blue promises the human touch, it raises an eye brow. What were they doing before? Are they going to be any more human now? When my flight is delayed will they listen to me and make a sincere apology and walk me down to the nearest Starbucks at the airport and buy me a tall non-fat chai? No they will not. Then why the promise?

Domino’s / McDonald's Smiles
Domino’s pizza and McDonald’s have been advertising over the last few years that they serve smiles. Yes, it is good to find a pizza delivery driver who is professional and has a smile on his face as he/she delivers my pizza on time. But when was the last time a pizza delivery person smiled at you, unless you tipped him/her generously. Same with McDonald's. When I go through the drive-thru, after I survive the screeching noise made by the speakers, where I have to repeat my order three to four times, and make it to the pick-up window, finding either me or the employee smiling would be liking playing Where's Waldo. There is nothing wrong with a McDonald’s employee, but as they try to be efficient and gather all my food items and take the orders from the cars behind me, do they have an opportunity to pause for me and share a genuine smile?

Best Buy Knows

The Best Buy ads of informed “better than WalMart” employees always fascinated me. Hence this Saturday, I visited a Best Buy to purchase a GPS system for my car. As I entered the store, I realized it was going to be a challenge to find the “men and women in blue”. As I got to the car accessories section, found the GPS systems, and shortlisted my choices to three models, I needed help. I remembered the ads showing me these helpful “men and women in blue” who knew it all. When I finally found and flagged down a Best Buy employee, she looked at the GPS systems for a minute, and then explained to me that she would go get me the “right person”. After a wait, the "right person" came to save the day. He looked sharp and had a smile on. When I told him I needed his help choosing one of the three models, he started reading the information signs below each product. When he was ready, he started by reading aloud the information sign from the first GPS system. As he was reading about “lifetime traffic”, I pointed out to him that the other two also has the same text on their respective info sign. He paused for a second, looked at me, and said, “You are right.” Somehow, this time I was not happy to know that I was right. Finally his advice came down to, “this one looks like it has a bigger screen.” Now that is not what the ad promised. Why would Best Buy marketing advertise its informed team members, when in this down economy they, like every one else, are trying to stay profitable by controlling labor? The false promise goes even further to make Operations' life difficult.

Taco Bell and the Fresh Fruit Fable

This to me is the best example of a “over promise”. I saw the ad and went to Taco Bell for fresh fruit in my smoothie. I have to admit, if they had fresh fruit in any form, I would have been dancing on cloud nine. But instead I saw the team member add a spoonful of liquidy fruit filling to my drink. That was not real fresh fruit, at least to me.

When I look at each of the above examples, I realize the following three things:

1. In each case Marketing has chosen a fantasy message that will really connect with customers without taking into account Operations, who has very little chance of fulfilling the promise.
2. Marketing, in each of the examples, believes in getting customers in the door, but does not take ownership of the disappointment caused by over promising advertising.
3. A true test of marketing would be to identify what they can actually offer, that customers love, that will differentiate the brand.

We all know in the advertising world in U.S., puffery goes unchallenged. I can get away with advertising the world’s best pizza but cannot say that my pizza is better than Pizza Hut’s pizza. But does that still mean that marketing has the right to over-promise? Or does that mean that we consumers have become so smart that we can see through the ads and filter what is true, just as we see through a little child who walks in and tells us that he saw a blue monster in the street.

{Non-Profits: Seven Steps to Maximizing Fundraising}

1. Relevant awareness of non-profit

The target must know all relevant information about the non-profit. Here are some key issues to consider as the non-profit builds awareness:

The information should come to target first hand and not filter through second or third hand audience. That builds a connection.

The communication should be on-going and not one time.

The communication should start and precede any request for funds. Those who are made to feel like "insiders" will contribute more.

RECOMMENDATION:

EVALUATE CURRENT AWARENESS OF THE NON-PROFIT

 

2. Personal/social connectivity

It is very important that each target audience has an answer to the question: "Why is the non-profit important to me and why do I need to step up for the building of the non-profit". Many times when a target audience develops a "soft connection" with a cause they feel the following:

There are "many others" who will donate.

The non-profit will happen with or without my support.

After they take my money, I will not be in the loop any more.

RECOMMENDATION:

BRAINSTORM ON HOW TO BUILD THE CONNECTION

 

3. Replace current recipient of $/smaller contribution amount

It is a common fact that when a new cause is considered by a target, he/she usually starts by thinking "what can I do less, in order to accommodate this cause?" Hence it is very important to break down the contribution element into smaller chunks. E.g. for less than $14 a day, for only one year, you can make a lifetime contribution to the community by being a donor for this non-profit.

Facts like this, instead of a "high threshold of $5,000" will make the target audience think and see what he/she can do to include this cause in his/her choice set.

RECOMMENDATION:

REPOSITION SOME OF THE CONTRIBUTION AS PER DAY OR PER MONTH NUMBERS, INSTEAD OF IN ONE-TIME $.

 

4. Ongoing connection with the non-profit

Ongoing connection, both in the form of involvement and contribution keeps the "habit of participation" alive. This can be accomplished by:

Making contributions in installments

Sending periodic update of progress to the target (and treating him/her as a stakeholder in the non-profit)

Creating a website where the target can check progress anytime he/she wants

RECOMMENDATION:

WEBSITE WITH REGULAR UPDATE

MONTHLY REPORTING ON LOCAL WEBSITES

 

5. Issue/cause reaching out on a personal level (not mass communication)

The non-profit and its office-bearers reaching out personally offer the best chance for contribution. Mass-emails hardly work, unless forwarded by a neutral peer.

RECOMMENDATION:

CONTINUE TO REACH COMMUNITY LEADERS ONE AT A TIME

PENETRATE COMMUNITY LEADERS AND LOCAL BUSINESSES

 

6. Fundraising is full time job

Based on past experience, full time fundraisers are significantly more effective than part-time fundraisers (especially those who are not into sales).

RECOMMENDATION:

HIRE HIGH SCHOOL STUDENTS TO MAKE CALLS

BASE SALARY PLUS BONUS

 

7. The target receives a gift that he/she can display to mark the beginning of a commitment

This initiates a commitment (similar to an engagement ring) that:

Makes the target proud of his/her action

Acts as a reminder to his/her commitment

Helps him share his/her good deed with others in the community

RECOMMENDATION:

WHAT CAN WE GIVE TO DIFFERENT LEVELS OF DONORS?

WEBSITE RECOGNITION

MAGNETS (WITH NON-PROFIT NAME)

{Calling All Pizza Brands: Differentiate!}

In 1988, when I got my first job offer to work for Pizza Hut corporate in Louisville, I was introduced to the complexities of the pizza wars.  It is amazing to see that the members of the Pizza Hut team of 1988 are now at CMO level positions in at least seven major restaurant chains.  Outside marketing, the influence of COO Pat Williamson left a mark in my mind as a visionary who put guest experience first. Pizza Hut, as part of the YUM family, always took pride in being most marketing intelligent. If any brand could out market its competition, Pizza Hut could.

One of my corporate career's last stops was at Papa John's in Louisville, KY where I got to work Papa John's founder of John Schnatter. John's strength is his simplicity and focus on delivering an uncompromised product to customers.  When the guy whose name is on the box is the best pizza maker in the company and is focused on nothing but quality, the brand gets "better ingredients better pizza" rooted in its trenches.

Since starting consulting, I've had the opportunity work with Domino's to assist them with their database and online strategy.  Domino's to me is completely different than the other two pizza brands, as they are focused on delivery first.  In simple layman's terms, if it cannot be delivered efficiently, Domino's doesn't touch it.  No wonder they came up with hot delivery bags and the 30 minute guarantee (which is even used outside the U.S. by Domino's and their key competition).

I've also had the chance to learn from Sarah Grover of California Pizza Kitchen at MEG meetings. Sarah brings an added dimension to the industry as she, along with being a Marketing and Operations visionary, also focuses on harnessing operations to best offer an upscale pizza experience. 

In addition to these big name pizza brands I have consulted with smaller regional pizza chains around the country. With all this diversity of talent, expertise and vision, I expected the pizza category to be quite differentiated when I looked at 2009 Leaky bucket research results.  I was surprised to find out that the pizza category is becoming more undifferentiated.  The big three in the pizza category, led by Pizza Hut, drives the price points for most brands, hence price/value is at par for all brands, which suggests that in the mind of the consumer, no "one" brand has a better price/value proposition than the others. Even though half the category is composed of regional and local players, in the broadest sense, the category seems to be following the big three. Collectively, food and menu are the biggest drivers of non-positive future visit intent. (To review the leaky Bucket information visit http://www.zenmango.com/leakybucket.html.)

As I sit back, I think that if I were king of the pizza category for a moment, this is the direction I would move category to:

1. Pizza Hut:  Continue to focus on great pizza variety at a good value.  If a book is ever written on alternate forms of pizza, Pizza Hut would be in best position to write that.  Bring more new news to the category, Pizza Hut.
   
2. Papa John's:  Go back to the "Better ingredients and better pizza" (BIBP) strategy. I recognize that the BIBP strategy may be a decade old, and the rest of your competitive brands have reduced the gap on better ingredients, but I feel there are considerable rewards to be reaped by going back to BIBP.  Do what you do best, raise the bar Papa John's.  John, if you are listening, America needs to you make our pizzas better.  We are waiting as "Better" is never a destination, it is an ongoing journey.
   
3. Domino's: Stop trying to imitate Pizza Hut and offer new products that do not work.  What was that pizza-pasta combo thing?  Aside from being a great source for a carb-overload, that is not what we need you for.  Go back to being the leader in delivery.  Focus on delivery and be America's Pizza Delivery Company by offering great and speedy value consistently, every time.
   
4. Regional chains:  Try to free yourself from the shadow of the big three. Get to know your local tastes. Own regional events.
   
5. Local pizza places: Offer an experience that the big three cannot offer. Get personal and serve one customer at a time.  Be the "Cheers" of the neighborhood, where you know the name of every customer.
   

{What’s Most Important to Your Guests' Experience?}

What is the one thing a frequent traveler wants from a hotel during a business trip?

Of course a clean hotel, a nice room, a great flat-screen TV, a shower with amazing water pressure and other things. But all this is of no avail if one cannot have a good night's sleep. Some of us like me are fortunate that we can fall asleep anywhere anytime. Unfortunately, that is not the case for most frequent travelers.

Research International conducted an online study among 1,000 overnight and international business travelers who took at least 2 trips in the past year. 25 percent of travelers said they have fallen asleep in a meeting due to sleep deprivation, 70 percent felt less productive after traveling, and close to 20 percent had a presentation go badly or lost business as a result of poor sleep due to traveling.

So what can a hotel do? How far should they go?

In a recent trip to the DC area, I stayed at the Lorien Hotel and Spa in Alexandria, VA. As my teen marketing team and I walked into the hotel, I realized this would be a "different experience"; but was not sure if that will be different good or different bad. As I was checking in, we saw a living area on the right with tons of books, all in white covers. More strange stuff I guess.

The rooms were nice, the beds were comfortable. There was a fresh and clean aura in the room. But what I saw next completely startled me. Next to my bed, on the bedside table, was a brochure called "Sweet Dreams Made Easy". Inside the hotel had three pages of stuff, mostly free, to make sure that I had a good night's sleep. They offered pillows of every kind that ranged from snore-no-more pillows, a body pillow, a neck pillow, a bed wedge, water pillow, magnetic pillows to contour pillows. To unwind, they offered lullaby library songs, ear buds, sleep masks, bedtime stories, a soothing sound machine, diffusers or a humidifier. Of course if I was a tad hungry, they would bring milk and cookies for me for a moderate charge. And if all this fails, for $20, I could get my own teddy bear.

Wow!

I thought for a second and felt WOW (again). I had previously resigned to the fact that there could be no "really new" wow ideas in a hotel. Hotels to me have become transactional experience providers, but this was a case where a hotel really knew the most important thing I needed and went all out to make sure I got a good night's sleep. This is the perfect inspiration behind a WOW guest experience.